Enduring the death of a family member is one of the most stressful life experiences a person can go through. Not only is it an emotional time, but it’s an occasion that requires diligent legal action in order to properly distribute the dead one’s assets according to his or her last will and testament. This falls into the category of probate, the legal process that determines exactly how a dead person’s will is to be administered and processed.
Probate comes from the Latin term meaning “to prove,” as in “to prove the will.” Any probate problems, such as not having a will at all, will substantially slow down the process — that’s why it must always be handled by a skilled legal representative. Essentially, the probate process can be broken down like this:
Paying debts and transferring assets
One of the first things that must be settled in any probate case is the payment of all remaining debts the deceased may have. Creditors must be notified of the deceased’s passing as well. Then, and only then, can the heirs can receive their benefits. Of course, these rules tend to vary from state to state, since probate is handled in state, not federal, court. Executors of the will must keep these two processes in mind as they are the main components in proving a will during the probate process.
Sometimes, a person simply won’t leave a will, meaning his or her estate can become contested one he or she dies. These probate cases can often take months to settle. Think of it like gridlock: No one can break through the stagnation until all the possible pieces are cleaned up first. This is where probate loans can end up playing a huge part in the process, especially for those who are looking to sell any property of the deceased in the meantime.
Landing a probate loan or fiduciary mortgage
A probate loan can work for a number of things, but maintaining the deceased owner’s property is a crucial one. You’ll likely try to sell the home and property once the probate case is cleared up, so while you wait, it might be to your benefit to keep the home in good condition and prep it for sale. Additionally, these inheritance loans will be paid back directly out of the estate once it is resolved and awarded to you. This means you won’t have too worry much about going into debt. You could also establish a fiduciary mortgage with the estate’s trustee that says the home will not be sold, but rather passed onto you as a beneficiary of the estate.
Of course, as mentioned before, each state has its own regulations about probate, and that extends to fiduciary mortgages as well. Always know the rules of game before you sign up to play. It will help you in the future to know exactly what you can expect out of a probate situation when it’s someone you know. References: closeprobate.com