How to Borrow Future Inheritance From Family

Dealing with a death in the family and the subsequent issues with a will or estate can be overwhelming. If you are in need of money and know that you are receiving an inheritance from your family, it is possible to get a loan against the inheritance. Before you can get a loan, the inheritance must be free of any liens or other encumbrances that could place it at risk of being taken by creditors.

Instructions

1. Contact the executor of the estate and ask for a copy of the will and other legal documents that prove you have an inheritance coming to you. You must also be able to prove that what you inherit will be yours to control.

2. Determine exactly how much money you need to borrow and figure out if your future inheritance will cover that amount. Any loan you take out against your inheritance reduces the amount you will eventually receive.

3. Consult a tax attorney about the tax consequences, if any, of borrowing against your inheritance.

4. Find a financial firm in your area or online that loans money on inheritances. These are often called "advances on inheritances" and can be useful if your funds are tied up in probate court. Most inheritance loan applications require a copy of the will as well as any appropriate probate documents and some personal information. The lender will do a background check to make sure that there are no liens or other claims to the money that is intended for you before making the loan.

5. Read the loan contract in full and understand the terms of the loan. While you can borrow as much as $100,000 against an inheritance, the fees can be substantial so make sure you find an inheritance loan company with a low fee.

References

• Simon Volkov: Inheritance Loans Need to Have Real Estate as Collateral
• Inheritance Funding: Probate Wills FAQs