Inheritance Advance Blog

Selling Probate Real Estate?: Realistic Pricing is EVERYTHING!

Eric Holdsworth — Thu, 24 Mar 2011 20:45:00 GMT

Because of the current climate in the real estate market, the most important factor in preparing to sell an Estate property is a realistic and competitive pricing strategy. While every seller clearly wants to get as much as they can when selling Estate property, it’s critical to remember that a property is only worth what a potential buyer is willing to pay for it. Much too often, heirs set an asking price based on what the property used to be worth or the price they would like to get rather than what a prospective buyer would be willing to pay. Mistakenly setting an asking price too high leads to a property sitting unsold on the market and, ironically, even deeper price cuts down the line! The following tips are critical to understand for anyone involved in selling an estate property.

Years of studies have proven that starting with competitive asking prices leads to HIGHER sales prices and SHORTER sales periods!

It can be tempting for sellers of real estate to list a property with an unrealistically high asking price. Heirs and estate representatives often forget that simply asking for a certain amount hardly guarantees they will ever get that amount, no matter how long they wait. In today’s real estate market, buyers have a sea of options and will not even look at properties priced higher than other homes in the region. As you can see in the chart to the right, pricing property even 10% over current market value means only 2% of potential buyers will even look at the property. Even at just 5% above market value, 70% of potential buyers will refuse even considering it!

Choose a realtor experienced in effectively selling property in YOUR area.

When selecting a real estate agent/company, look for one with expertise specifically in your area. This individual will have the best idea of what your house is worth at that given time. Interview two or three local real estate professionals to determine who is best suited to market the property. Selecting an agent who shares your desire for a fast, efficient sales period gives you the greatest likelihood of a sale at a competitive, fair price and reasonable timeframe. Resist the temptation to list a property with the real estate agent who simply suggests they will secure you the highest price for your property. Across the nation, the most successful real estate agents and home sellers understand the importance of listing a property at a competitive price.

Be aggressive early! Statistically, the longer a house is on the market, the less you’ll eventually receive for it.

Your property will get the most attention from buyers during its first month of being exposed to the market. It has been shown that you have the greatest likelihood of receiving the highest price during the first month. As you see in the figure to the right, the actual sales price gradually begins to drop after the first month. This is because buyers increase their scrutiny of price and condition when a property has not sold promptly, assuming that it’s either overpriced or has a problem. If and when the real estate agent suggests a price reduction, the seller must act quickly to let the market know that they are a serious. As time goes on, the seller may be forced to continually lower the price to attract buyers if they don’t begin with a competitive asking price, eventually even reducing the price below the asking price of competing properties.

Overpriced properties miss out on the probability of a sale during the critical, early period on the market. A buyer’s first impression of a property is critical and directly related to how the price compares to other properties for sale. If the buyer doesn’t feel that a property is well priced in comparison with other available properties, this will negatively impact an otherwise good first impression and the property will never sell.

Home upgrades: More cost than value!

Money spent on major improvements is rarely, if ever, made back in increased sale price! This is a common misconception among people outside the real estate world. The latest data shows the money-losing nature of most home improvements is getting worse because of the poor housing market, not better. In a 2009 survey, the average “home upgrade” cost 36% more than was made when the home was sold. For example, if the average seller spent $10,000 out of pocket on improvements before putting the house on the market, they only made $6,360 more when the house sold! That’s a loss of $3,640! Talk to your sales agent about what minimal work they would suggest be completed to make the property the most marketable.

If the home is in need of small repairs or general cleaning, complete that work before putting the home on the market. Repairs such as painting and minor maintenance will usually shorten time to sale and will help secure a higher sales price.

Don’t be discouraged! There are still buyers out there looking for a fair price.

During the time the house is on the market, entertain any offers that might come in. Even though an offer seems low, remember that all offers are subject to negotiation. Although it is tempting to hold out for the highest possible offer, in a slow market any offer that is close to your target price is worth serious consideration. You can’t merely “wait it out.” Prices will not likely be back to 2005 levels for decades… if ever!

Can I get a Probate Loan from my Bank? No!

Eric Holdsworth — Thu, 14 Oct 2010 20:39:00 GMT

Unlike our Probate cash advance program at IFC, banks in the US will NEVER loan or advance you money based on an eventual inheritance. While nearly all heirs want and/or need their inheritance funds right away, the Probate process keeps them from seeing their inheritance money for 1-2 years!

An heir cannot apply for an inheritance advance at a traditional bank. They simply refuse to get involved to assist you in an inheritance delay. This is why we are able to help! When we opened our doors in 1992, we pioneered a superior new option for heirs tired of waiting for the Probate process. Since then, we’ve worked with thousands of heirs and advanced millions of dollars in Inheritance Cash Advances!

When you look at the comparison with traditional bank loans below, you’ll quickly see just a few of the ways a Probate Advance from Inheritance Funding Company is the superior option!

When will I get my Inheritance Payout?

Eric Holdsworth — Thu, 27 May 2010 19:24:00 GMT

When heirs are informed that they will be receiving an inheritance, they assume they will get their inheritance money within a few weeks of a loved one passing away. In reality, the Probate process delays the distribution of an inheritance for many months or even years!
The Probate process leaves people wondering: "When will I get my inheritance?" Unfortunately, many heirs that need their inheritance money immediately won't see any of it for up to 2 years.
For this exact reason, we offer heirs a better option! If you need your inheritance money right away for any reason at all, give us a call or apply free online right now. Inheritance Funding Company has helped thousands of heirs get millions of dollars over nearly 20 years. We help heirs around the country get cash in as little as 3-4 business days.

When will you get your Inheritance? Don't wait, get it right away! Apply Free Right Now

Inheritance Loans vs. Inheritance Cash Advances

Eric Holdsworth — Tue, 09 Mar 2010 16:38:00 GMT

During my years here at Inheritance Funding Company, I've heard thousands of clients ask about the difference between an Inheritance Cash Advance and an Inheritance loan. While these terms often sound like the same thing, an Inheritance Cash Advance offers heirs many benefits that an Inheritance Loan does not.

1.The First Benefit of a Cash advance over a Loan is that there are never any monthly payments. Once you recieve your inheritance cash advance, we work directly with the estate attorney and probate court to be repaid. As we all know, loans come with monthly payments that require you to make confusing payments each and every month yourself.

2. The second major benefit of Inheritance Cash advances over traditional loans is there is no interest to pay. Instead of fluctuating interest rates that often appear one way and end up another, we use a very clear and competitive up-front fee. This amount is calculated and agreed upon with you before any contracts are ever signed.

3. The third benefit that sets an Inheritance Cash Advance apart from tratitional loans is that credit score has no bearing whatsoever! Quite frankly, we don't care about your credit rating. Our clients range from perfect credit, bad credit, and no credit and all in-between. Our guaranteed lowest price stays the same no matter what your credit score is!

As you can see, while "Inheritance Cash Advances" and "Inheritance Loans" sound like the same thing, our clients actually benefit much more from cash advances. Read just a few of the Testimonials we've gotten over the last 18 years and decide if an Inheritance Cash Advance is right for you!

An Heir’s Role and Guide to the Probate Process

Eric Holdsworth — Wed, 27 May 2009 19:08:00 GMT

Often times, when someone becomes an heir to an estate, they are unclear on exactly what to do next. Because of the complex probate process, heirs rarely understand their rights and choices, their role in probate, or the probate process itself.

As an heir, there are some things you should understand right away about your role in the probate process:

Contrary to popular belief, the estate attorney handling the probate estate represents only his/her client, the Personal Representative, “PR” for short (also referred to as the Executor or Administrator)
Because the estate attorney does not represent any heir associated with a probate estate other than the personal representative, he or she is under no obligation to take or return any phone calls, or to provide you advice as to your legal rights as an estate heir.
Any information that you receive regarding the estate will likely come in the form of a letter or probate pleadings sent to you by the estate attorney.

What is probate?

Probate is a court supervised process where the validity of the decedent’s (person who passed away) last will is established and through which the decedent’s estate is administered.

Probate is a very time consuming and paperwork intensive process. While some estates can be administered in 18 months or less, a large percentage of estates can take up to 3 years to close. This means that the estate heirs may not receive any inheritance money for up to 3 years after probate first begins.

How does the probate process work?

The very first step in the probate process is filing the Petition for Probate. This petition, along with the original will and codicils (legal alterations to the will), if any, are filed with the probate court. Also filed at this stage is the Notice of Petition to Administer Estate. In this case, the “petitioner” is usually the proposed Personal Representative.

Once these forms have been filed, the court clerk will set a hearing for 45-60 days after the filing date.

It is at this point that notice has to be given to all of the people named in the will. This is most likely the stage at which you first received notice of your heirship.

The Notice of Petition to Administer Estate is also published in a local newspaper to alert the decedent’s creditors that they must file their claims with the court within a specified period of time.

At the hearing, if no one has filed an objection to the probate, the court will admit the will to probate and appoint the PR. After this appointment, the court will issue Letters [either “Letters Testamentary” or “Letters of Administration”] which are used by the PR to prove that they have the authority to act on behalf of the estate.

The second phase of probate consists of an ongoing process of filings, notifications and applicable settlements. The following is just a short list of tasks which must be completed:

Identify all of the assets owned by the decedent at the time of death
File an Inventory & Appraisal which values the estate’s assets, both real (land) and personal
Notify the Department of Health Services
Liquidate all of the estate’s assets
Pay any debts, claims or taxes that are due and object to claims which should not be allowed
Settle all financial and property disputes
The final phase of probate consists of closing the estate and distributing the remaining assets to the heirs. If all goes smoothly, the final actions in the probate will be:
Obtaining a court order of distribution
Closing the estate accounts
Making final distributions to the heirs
Obtaining receipts from the heirs for the distributions made to them

As you can tell, the probate process is indeed a long and difficult process. The good news is that the Personal Representative chose to retain a probate attorney to guide the estate through this complicated process! The bad news is that, even with the help of an attorney, the probate process can still take 12-18 months or longer!

WHAT IF YOU NEED A PORTION OF YOUR INHERITANCE NOW?

If there is a substantial amount of cash in the estate, it may be possible to persuade the PR and the estate attorney to petition the court for a preliminary distribution.

When this is not an option, contact Inheritance Funding Company, Inc. [IFC]. IFC provides cash advances to heirs who are stuck in Probate. IFC’s inheritance advances are not loans, so there are no monthly payments. Instead, IFC actually purchases a portion of your inheritance and is paid back directly from the estate when Probate is closed. If you are interested in learning more, call one of IFC’s Funding Officers at (800) 944-2072 or visit IFC’s website at www.InheritanceFunding.com.

Heirs to Today's Largest Fortunes

Eric Holdsworth — Thu, 30 Apr 2009 23:05:00 GMT

This time on the Inheritance Funding Blog, we’re going to take a look at a few extreme examples of heirs awaiting an inheritance. Some people call it luck. Others just say that it’s being born to the right circumstances. No matter your stance on the subject, the public is becoming increasingly interested in the lives of famous heirs who are waiting to inherit more money than most people could ever imagine spending. Below are some of today’s heirs and heiresses staking their claims to their relatives’ vast fortunes.

Delphine Arnault: Delphine’s father, Bernard, heads the LVMH Group whose portfolio includes Louis Vuitton, Moët, Hennessy, Marc Jacobs, Dior among others. With this extensive collection of brands, LVMH has its hands in all things luxury. Delphine heads the Dior shoe and bag divisions and is involved with many other products and designers. Deemed the Wolf in a Cashmere Coat, she is one of the richest women in the world.

Sam Branson: Sam’s father, Sir Richard Branson, is worth an estimated $3.8 billion and is the man behind the Virgin collection of companies such as Virgin Records, Virgin Books, Virgin Atlantic Airways, Virgin Mobile and Virgin fuels. Sam is often seen hanging with Hollywood celebutantes, modeling, and relaxing on his dad’s private 74 acre island, Necker Island. It remains to be seen just how much Sam will eventually be involved in his father's businesses.

Charlene de Carvalho-Heineken: Charlene became the wealthiest woman in the Netherlands when her father, Alfred Heineken, passed away in 2003. The heiress to the premium beer from Holland is worth more than $7 billion and is currently maintaining the business’ operations.

The Ikea sons: IKEA is the world’s premier supplier of affordable home furnishings. Headed by Ingvar Kamprad, IKEA is, in fact, the world’s largest furniture retailer generating around $28 Billion dollars per year in worldwide sales. Ingvar’s three sons are expected to inherit tens of billions of dollars while also sitting on the company’s executive board.

Abigail Johnson: Abigail “Abby” Johnson’s family controls 49% of America’s largest mutual fund company, Fidelity Investments. After Harvard Business School, Abigail quickly worked her way through the ranks at Fidelity and in 2001, took control of Fidelity’s mutual fund division. As of 2008, Abigail Johnson was worth around $15 Billion dollars US, placing her as the 43^rd richest person in the world.

Aditya Mittal: Aditya is the heir and CFO of the Arcelor Mittal Steel company. He was instrumental in the company’s $38 billion takeover of European steel business, Arcelor. He shows no signs of halting expansion and it seems he has inherited his father’s ambition as well as his vast wealth.

Ivanka Trump: As the daughter of Donald Trump, Ivanka stands to inherit her father’s undisclosed amount of personal wealth as well as real estate and entertainment assets. She is already the vice president of real estate development and acquisitions of the Trump Organization. Her brothers, Donald, Jr. and Eric, are also executive vice presidents of the corporation and along with Ivanka will inherit most of what “the Donald” leaves behind.

Allegra Versace: On her 18^th birthday, Allegra came into the inheritance left to her valued at over $700 million. After her early education in Milan, Allegra attended Brown University. Her struggle with anorexia is well documented and ongoing. She currently lives in Italy with her mother, Donatella, and is extremely active in the direction that the Versace brand ultimately undergoes.

Aerin Lauder Zinterhofer: Granddaughter of cosmetic greatness, Estee Lauder, Aerin is the public face of the company and also backs the creative marketing department and global advertising. Today, the Estee Lauder Company is comprised of 19 brands including Clinique, Prescriptives, Aveda, MAC and Origins. In 2004, Aerin’s stock holdings in Estee Lauder alone topped $550 million US.

Wills vs. Trusts: What They Mean for Your Inheritance in Probate

Eric Holdsworth — Wed, 01 Apr 2009 23:01:00 GMT

Wills and trusts are two commonly utilized tools used to ensure the proper transfer of assets after death. But what exactly is a will? What is a trust? How are wills and trusts similar or different? After reading this article, you should have a better understanding of the basics and differences regarding these two tools and how they are used.

Wills

A will is a written document that a person uses to define how their possessions and property will be distributed upon his or her death. The person’s accumulated property is known as an estate. The creator of the will is referred to as the testator. The testator designates, or names, beneficiaries in the will document. A beneficiary is someone or something that will receive a share of the testator’s estate upon the testator’s death. The testator can name one or multiple beneficiaries. The testator also designates an executor. An executor is the person in charge of carrying out the directions of the will.

In order for a will to be valid, the circumstances surrounding the creation of the document and the document itself must adhere to certain requirements. Since wills are governed by state law and each state’s will laws vary, you should check your state’s requirements. Here are some of the general requirements that are common for valid will creation:

The testator must be of majority age, which generally means he or she must be at least 18 years of age.
He or she must have the intent to create a will
He or she must have the physical and mental capacity to create a will.
Wills are typically required to be signed by the testator and a certain number of witnesses.

Some people believe that once a will is created, it cannot be revoked. However, this is incorrect. All wills can be revoked by the testator until the testator dies. A will can be revoked typically in three different ways:

A subsequent written instrument such as a new will or a letter of revocation.
A physical act such as tearing up the will.
An operation of law, for example, a subsequent marriage or a court determining the will to be invalid.

After the testator’s death, their will is put through the probate process. Probate is the legal process in which a will’s validity or invalidity is determined. If the will is held to be valid, the testator’s estate will be distributed according to the directions in the will. While this may sound simple, probate proceedings tend to be complicated, time-consuming, expensive, and confusing. You can learn more about Probate on our website by clicking here: Probate and Inheritance Funding Company.

Trusts

A trust is a separate entity whereby a person’s real and personal property is held and remains for the benefit of another persons. In general, a trust must have a settlor, an identifiable beneficiary, and a trustee. The settlor is the person creating the trust. The beneficiary of the trust are the designated individuals who hold inheritance rights of the trust property. The settlor can name one or multiple beneficiaries. The trustee is the person or organization that manages the trust.

The trustee holds legal title to the trust property and must hold and manage the property for the benefit of the beneficiaries. The settlor can designate one or more trustees. If there is more than one trustee, each is referred to as a co-trustee. The settlor can, and should, also designate an alternative trustee. This person will serve as trustee if the original trustee cannot or will not perform their obligations.

In order for a trust to be correctly managed, the settlor usually creates a trust document. The trust document is commonly referred to as a Trust Deed. The trustee is obligated to manage and administer the trust in accordance with the terms of the trust document and law. Trusts are governed by state law and each state’s trust laws vary, so you should check your respective state’s requirements.

Remember, when deciding on what type of will or trust you should implement, it is always best to consult a qualified probate attorney in your area. One online resource, USA-Probate.com, provides a comprehensive listing of probate lawyers near you.