Inheritance Lender Glossary

Glossary of Inheritance Lender Terms

  1. Beneficiary

An individual or entity named in a will or trust to receive assets or property from an estate.

  1. Estate

The total collection of assets, liabilities, and property left by a deceased person.

  1. Inheritance

Assets, property, or money received by a beneficiary from a deceased person’s estate.

  1. Executor

A person appointed in a will to manage and distribute the estate according to the deceased’s wishes.

  1. Probate

The legal process of validating a will, resolving any debts, and distributing the estate to beneficiaries.

  1. Heir

A person legally entitled to inherit property when there is no valid will in place.

  1. Advance

A cash payment provided to a beneficiary in exchange for a portion of their expected inheritance.

  1. Lien

A legal claim or right against a property used as collateral for repayment of a loan or advance.

  1. Trust

A legal arrangement in which one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary).

  1. Trustee

The individual or organization responsible for managing and distributing the assets within a trust.

  1. Funding Agreement

A contract between an inheritance lender and a beneficiary outlining the terms of an inheritance advance.

  1. Interest Rate

The percentage charged by a lender for providing a loan, usually expressed as an annual percentage rate (APR).

  1. Collateral

Assets or property pledged as security for the repayment of a loan or advance.

  1. Contingent Beneficiary

A person or entity entitled to receive an inheritance if the primary beneficiary is unable or unwilling to accept it.

  1. Intestate

The status of an individual who dies without a valid will, resulting in the estate being distributed according to state laws.

  1. Loan Agreement

A document that specifies the terms and conditions of an inheritance loan, including repayment terms and obligations.

  1. Disbursement

The actual distribution of funds or estate assets to beneficiaries.

  1. Creditor Claim

A formal request made by a creditor to collect debts owed by the deceased’s estate.

  1. Probate Court

A specialized court that oversees the probate process, including will validation and estate administration.

  1. Residuary Estate

The remainder of an estate left after specific bequests, debts, taxes, and expenses have been paid.

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