Financing estate property that is in probate can be done using one of two main methods. These methods have different aspects which can be adjusted accordingly depending on the individual probate case. The two main components consist of “security” (the real estate) and the “borrower” (the estate representative, trustee or heir/beneficiary). We need to consider whether the client will be borrowing as the estate representative or trustee or if they’ll be “buying” the property from the estate and using their own income and credit in order to qualify.
What can a probate loan be used for?
– Pay attorney fees
– Pay taxes
– Arrange a buy-out by other heirs
– Pay Medi-Cal and other creditors
– Stop foreclosure
– Pay settlements and fund other legal actions
– Resolve dispute “work-outs”
– Provide quick funds for probate emergencies
– Make needed repairs
Who is the Borrower?
Whether or not you achieve financing will depend greatly on how the loan will be signed for. This will make a big difference to the lender. They will have to consider whether the borrower will be signing on behalf of the estate or personally?
Here are some of the financing options available:
– Conservator or Guardian
What is involved in Settling an Estate?
– Determining if any personal property and/or real estate is owned by the deceased person
– Paying any debts or taxes that the deceased person may owe, including costs of doing probate
– Distribution of all real and personal property which remains to the rightful beneficiaries
This property is said to be owned by the “estate” of the deceased person and must remain so until the probate process is complete and the judge or other court-appointed person says it may be distributed.
How Long Does It Take to Settle an Estate?
The probate process will be different depending on what state you’re in and the size and complexity of the “estate.” In California, small estates can even avoid a formal probate when the total assets add up to less than $100,000, however the debts must still be paid. Also, in California, the minimum time an estate will likely be open is probably from six months to a year. It could possibly be longer if the estate requires real property such as a home to be sold and the buyer to close escrow.
Let us put our experience and expertise to work for you. Call us (310) 356-6500