Get a shared inheritance loan to restore your bottom line.
If you stand to inherit a large amount of money when a friend or family member dies, there is a way to take advance payment on that money and forgo a portion of the payment in the future. This is called an inheritance loan. A shared inheritance loan refers to when more than one person will be getting money from an estate.
Instructions
1. Determine how much you want to borrow. Remember that whatever you take today will leave you less down the line. And if you think you need money now, you might really need it then. Try to take as little as possible to bridge the gap during your time of financial need.
2. Locate the will or other documents that show that you are entitled to the money. These documents need to clearly define that the portion of the money you are getting is clearly yours. The inheritance can be shared (as in with a sister or brother), but it must stipulate that you are in total control of your portion of the money.
3. Contact a firm that extends inheritance loans. Inform the firm of your wishes, including how much your are seeking. Also ask what premium it takes for the money. Remember that you are getting money now, but the firm will not be getting its money for years. Therefore, it must be compensated for waiting in the same way that an investor who invests in a certificate of deposit is compensated for waiting until the money is free again.
4. Discuss the tax implications of taking the money early. Tax law is constantly changing at both the state and federal level. However, a portion of the money must be set aside for taxes, so that they may be paid when the person leaving the money dies. Also, depending on how the loan is structured, you may be taxed as you receive the money as it may count as income.
5. Provide all requested documentation. You will need to provide copies of the paperwork that entitles you to the money, and you may also need to provide tax returns and birth records to prove you are indeed who you say you are and therefore entitled to the cash.
6. Sign the paperwork outlining terms of the deal. The basics will include the amount you are receiving; the agree upon compensation for the lender; and how the money will be paid back at a future date. Be sure that the terms do not attach any of the other heirs who will later share in the inheritance.
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