Inheritance Lender Glossary
Glossary of Inheritance Lender Terms
- Beneficiary
An individual or entity named in a will or trust to receive assets or property from an estate.
- Estate
The total collection of assets, liabilities, and property left by a deceased person.
- Inheritance
Assets, property, or money received by a beneficiary from a deceased person’s estate.
- Executor
A person appointed in a will to manage and distribute the estate according to the deceased’s wishes.
- Probate
The legal process of validating a will, resolving any debts, and distributing the estate to beneficiaries.
- Heir
A person legally entitled to inherit property when there is no valid will in place.
- Advance
A cash payment provided to a beneficiary in exchange for a portion of their expected inheritance.
- Lien
A legal claim or right against a property used as collateral for repayment of a loan or advance.
- Trust
A legal arrangement in which one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary).
- Trustee
The individual or organization responsible for managing and distributing the assets within a trust.
- Funding Agreement
A contract between an inheritance lender and a beneficiary outlining the terms of an inheritance advance.
- Interest Rate
The percentage charged by a lender for providing a loan, usually expressed as an annual percentage rate (APR).
- Collateral
Assets or property pledged as security for the repayment of a loan or advance.
- Contingent Beneficiary
A person or entity entitled to receive an inheritance if the primary beneficiary is unable or unwilling to accept it.
- Intestate
The status of an individual who dies without a valid will, resulting in the estate being distributed according to state laws.
- Loan Agreement
A document that specifies the terms and conditions of an inheritance loan, including repayment terms and obligations.
- Disbursement
The actual distribution of funds or estate assets to beneficiaries.
- Creditor Claim
A formal request made by a creditor to collect debts owed by the deceased’s estate.
- Probate Court
A specialized court that oversees the probate process, including will validation and estate administration.
- Residuary Estate
The remainder of an estate left after specific bequests, debts, taxes, and expenses have been paid.