What does the funding company receive in return for supplying the cash advance?
In return for a present cash payment, the heir or beneficiary sells to (technically, “assigns to”) the funding company the right to receive a fixed amount of money out of the heir or beneficiary’s share of the estate or trust. Q: When does the funding company get paid? A: The company is paid directly from the estate or trust upon distribution. The remaining funds are then distributed to the heir or beneficiary. Q: Are there any application fees? A: No. Fees are charged only for funded deals, and are deducted from the advance. Q: Will credit problems prevent an heir from getting an advance? A: The funding company obtains a credit report in preparing a case for funding, primarily to determine that there are no judgments, child support or bankruptcy proceedings that might interfere with payment of the assignment. A poor credit record alone, including delinquencies, discharges in bankruptcy, foreclosures, etc., will generally not prevent an heir or beneficiary from receiving an advance. Q:
