Is an Inheritance Cash Advance a Loan?
The simple answer is that an inheritance cash advance provided by Advance Inheritance is not a loan. A loan generally includes a specific pay off date. When Advance Inheritance provides funds, there is no specific pay off date, we are repaid when the probate estate is completely settled and the court has approved the distribution of funds. This period may be as little as a year from the opening of probate administration, to as much as two to three years, sometimes much longer Some estates takes multiple years to be settled, often times through no fault of the heirs themselves.
When we make a cash advance, it a non-recourse transaction. When lenders makes a loan, they generally have recourse to go after the borrower if the loan is not repaid. If we do not ultimately collect the amount due us, we have no recourse to collect from the Heir to whom we advanced cash. You will note that at no time do we request credit information from the Heir to whom we are making the advance. That is because this a non-recourse transaction.
Loans generally require periodic payments from the borrower. With Advance Inheritance, the only payment comes from the Estate personal representative at the settlement of the estate, never directly from the Heir who has received the cash advance.
To sum up, a cash advance is an assignment of interest that has no designated payoff date, is a non-recourse transaction, requires no credit checking, nor periodic payments. Generally, these would all be requirements and features of a loan.