An inheritance can serve as a financial boost, allowing you to pay for emergencies or make a significant purchase. However, the probate process can be slow, putting your money on hold. At times, the administration of a complex estate could extend probate to more than a year. If you need your inheritance sooner, there may be ways for you to receive it early.
Can beneficiaries expedite probate?
Estates that have a total value of $75,000 or less can go for summary administration, the simpler, less expensive and time-consuming option. All other estates may need to go through formal administration.
The executor oversees a significant amount of the probate process. However, there are actions you can take as a beneficiary that will impact the timeframe of the probate.
During the probate process, you’ll typically receive two kinds of waivers. One gives consent to the probate proceeding, while the other allows you to forgo the formal estate accounting. By not objecting to probate and bypassing the formal accounting, you can potentially avoid time-consuming hearings and shorten the probate process.
However, you should exercise caution before making such decisions. Issues surrounding the will, such as vague wordings or executor misconduct, may arise and affect your inheritance.
Taking a probate advance or inheritance loan
If you want to receive your inheritance early, you can take a probate advance or an inheritance loan. However, the convenience provided by these financial instruments can be expensive.
Getting an advance or loan on your inheritance might result in receiving less than the full amount you’re entitled to. Depending on the terms, probate lenders often charge a portion of the inheritance or levy heavy interest rates. For instance, if you’re due to inherit $20,000, the lender might take $5,000, leaving you with only $15,000.
Taking steps to expedite probate or your inheritance demands a thoughtful review of your financial goals and the specifics of the estate. The lender’s fee could be a small price to pay for what you need to accomplish. A consultation with an estate law attorney could help you determine the right move for you.