If you’re inheriting money from a deceased person, then you might be tempted to spend before it actually arrives. You might devote money to home improvements, stocks and shares, or personal items for yourself.
But sometimes, delays in the process can leave you short – and this might leave you struggling to pay the bills.
Understanding the Inheritance Process and Delays
Typically, it takes between six months and a year following the granting of probate and the release of inheritance to beneficiaries. Delays can stem from the probate register, and they tend to be proportionate to the complexity of the estate. If shares or properties need to be sold, or foreign assets need to be dealt with, then the potential for delays can only increase. The same goes if there are changes to inheritance tax, which can create work for the probate authorities.
Managing Immediate Financial Needs While You Wait
Of course, while you’re waiting for the money to come to you, you might have to deal with other financial needs. These might include paying bills, including existing debts. In some cases, an emergency situation will arise that makes the need for short-term finance more pressing. If you need a new boiler, for example, you won’t be able to wait for your inheritance.
You can get around these problems with the help of sensible budgeting, and perhaps by seeking help from friends and family. In many cases, an inheritance loan might provide the solution. This form of finance is designed so that beneficiaries can meet their obligations while waiting for their inheritance.
Exploring Alternatives to Help Fund Your Needs Before Inheritance
An inheritance loan is just one option. You might also cover financial gaps through credit, or by selling or pawning personal items. The downside stems from the interest you’ll be charged in the meantime. Make sure that you have a plan for paying back any money that you’re borrowing, and that you don’t end up selling anything that you really want to keep.
How to Budget and Plan for the Waiting Period
A good budget is one that accounts for every variable during the waiting period. It should have a clear purpose, which, in this case, will most likely be to keep you afloat during the wait. Make a list of your income and your costs, and slash the costs where you can afford to.
What to Do If the Inheritance Takes Longer Than Expected
No matter how well you budget, your plans might be thwarted by unexpected delays. The easiest way to cope with this is to simply borrow more money – or to start selling your possessions. You might also seek legal advice. You might take legal action for the harm you’ve suffered as a result of the delay – but this will often mean paying for the time of a good lawyer in the short term. For most, the best and safest approach might be to budget as though no more money is going to arrive.
