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Archive for the ‘Estate Preservation’ Category

Moving from the world of employment and a steady paycheck to a reality of pensions, Social Security and Medicaid can come as a shock to retirees who must contend with reduced income and new financial actualities. Financial advisers suggest that senior citizensinvestigate their fiscal status carefully before making any drastic economic changes or decisions.

There are a number of money management options that seniors should review in order to help them manage their finances more efficiently. Analysts remind retired individuals that not all suggested alternatives are applicable to every situation but seniors should carefully review each proposal to ascertain those which apply to their particular circumstances.

Credit Cards
Seniors should make it a practice to pay off their credit cards at the end of each month. This practice will save the credit card owner the costs associated with the credit cards’ high interest rates which increase the debt. With reduced income, seniors are at a greater risk of getting into a high-interest form of debt when they can’t pay off their cards at the end of each month.

Annuities

Annuities provide limited tax deferments and death benefits but the money is often locked in, unavailable to investors who may need the cash to take care of emergencies or other unexpected expenses. This is a major drawback, especially for seniors who may invest in annuities without fully understanding the implications of keeping their savings inaccessible for several years.

Life Insurance
Retirees should carefully review the cost of a life insurance policy verses the value of the policy. Seniors should investigate the cash surrender value of a life insurance policy versus the cost of the annual premium payments before signing on for such a policy.

Reverse Mortgages

Home Equity Conversion Mortgages (Reverse Mortgages) can offer real cash relief for retirees who want or need a monthly income or a lump sum payout. The Federal Housing Administration (FHA) – insured product offers seniors aged 62 and over assured alternative sources of income based on the equity in their home. Payment is not due until the borrower no longer lives in the house. The Department of Housing and Urban Development (HUD) regulates the industry and provides resources which ensure that potential borrowers have access to legitimate lending institutions for the HECM loan. HUDrequires that potential borrowers undergo counselingwith an approved HECM counselor before a lending institution can grant the Reverse Mortgage loan.

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Did you know that people who work with a financial professional fare better in retirement than those who don’t?
Recent surveys and studies indicate:

  • People who work with a financial professional have a median retirement asset value of $78,000
  • People who don’t work with a financial professional have a median retirement asset value of $28,000
  • 40% of people who do not work with a financial professional say they will need to work in retirement.
  • Only 29% of people who do work with a financial professional say they will need to work in retirement.

In addition, the study also found that half of all women who work with a financial professional generally feel more empowered and financially secure. These women also tend to feel more optimistic about their financial futures and are more apt to teach their children about money.

Why do you need a financial professional?

Do any of these statements resonate with you?

  • I’m confused about conflicting financial guidance
  • I’m anticipating a life change that will affect my finances
  • I’m hoping for a better financial performance from my investments, yet I’m afraid the financial risks
  • I’m unprepared to leave behind my legacy

If one or more of the above statements apply to your situation, you may benefit from the services of a financial professional.
So, why aren’t you working with a financial professional?

Among the most common reasons people don’t work with a financial professional are:

* I’ve never considered it
* I don’t have enough money
* I don’t trust them
* I’m embarrassed about my financial situation
* I don’t know enough about finances

Do any of these responses sound familiar? As you can see, you are not alone when it comes to the reasons why you may not be working with a financial professional.
Find out if working with a financial professional is for you.

There is no time like the present to work towards a better financial future. Working with a financial professional now can help you build a better financial future.

email: Rick Curtis

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Inheritance advances work well for both the borrower and the investor.


Heir advances – Easy Qualify

  1. Heirs of decedent’s estates can obtain a cash advance on their inheritance now and repay the obligation when the probate closes.
  2. Heirs can expect to get about a quarter to a third of their net inheritance early. Heir advances typically require 5-10 working days to fund.
  3. The security doesn’t have to be real estate; it could be cash, stocks, or other liquid assets
  4. Advances must be paid at the time of close of probate or sooner.
  5. Advances are not loans; they are cash lump sums paid to you now, which is discounted from the amount that you repay.


What Kind of Financing Terms are Available?

The cost of this type of transaction service may be from a quarter to a half of the total amount advanced. There is no “interest rate” or monthly payments because this is not a loan

Heir Loans – Well-Qualified

  • · Heirs of decedent’s estates can use their inheritance in lieu of a cash down payment in order to borrow to purchase California real property from the probate estate.
  • · The maximum that you may borrow is about 75% of the current value of the property, less any existing mortgages, liens or creditor bills to the estate.
  • · This means that you will need to inherit at least 1/4 of the total estate or more, depending on the NET value of your inheritance.
  • · This will require coordinating the transfer of the property out of the estate into the borrower’s name (done in escrow) and typically requires at least some effort on the part of the Attorney and the cooperation of Executor or Administrator


What Kind of Financing Terms are Available?

The rates and terms available are comparable to bank rates for a given borrower’s credit and income. Additional fees may be charged to coordinate the Attorney and Administrator efforts, sale, transfer, escrow, title insurance company and lender requirements.

So, what can you do with financing? Here are just a few examples:

1. Pay personal debts

2. Provide quick funds for emergencies

3. Stop foreclosure

4. Pay delinquent taxes

5. Provide money for repairs

6. Get cash for future living expenses

7. Pay for education costs

8. Pay for settlements and fund other legal actions

If You Are the Beneficiary of a Trust

1. Beneficiaries can obtain a cash advance on their inheritance now and repay the obligation when the trust is distributed (which must be within 3 years)

2. Beneficiaries can expect to get about a quarter to a third of their net inheritance early. Trust advances typically require 5-10 working days to fund.

3. The security doesn’t have to be real estate; it could be cash, stocks, or other liquid assets

4. Advances are not loans; they are cash lump sums paid to you now, which is discounted from the amount that you repay.

What Kind of Financing Terms are Available?

The cost of this type of transaction service may be from a quarter to a half of the total amount advanced. There is no “interest rate” or monthly payments because this is not a loan

Beneficiary loans

  • Beneficiaries of trusts can use their inheritance in lieu of a cash down payment in order to borrow to purchase California real property from the trust.
  • The maximum that you may borrow is about 75% of the current value of the property, less any existing mortgages, liens or creditor bills to the estate.
  • This means that you will need to inherit at least 1/4 of the total trust or more, depending on the NET value of your inheritance.What Kind of Financing Terms are Available?The rates and terms available are comparable to bank rates for a given borrower’s credit and income. Additional fees may be charged to coordinate the Attorney and Trustee efforts, sale, transfer, escrow, title insurance company and lender requirements.So, what can you do with financing? Here are just a few examples:1. Pay personal debts

    2. Provide quick funds for emergencies

    3. Stop foreclosure

    4. Pay delinquent taxes

    5. Provide money for repairs

    6. Get cash for future living expenses

    7. Pay for education costs
    8. Pay settlements and fund other legal actions

    I am a non Heir Third Party Borrower

    If you are related to one or more heirs of a probate estate which owns California real property, and wish to “step into their shoes” it’s sometimes possible to have the heir(s) or beneficiary assign their interests. This type of transaction, while more complicated, is possible with a well-qualified borrower, who can finance up to 95% of the purchase price.

    If you have no relationship to any of the estate heir(s) however you are prepared to make down payment and obtain a loan to purchase California real property, financing is possible with a well-qualified borrower, who can finance up to 95% of the purchase price.

    It is very important that you be informed about all the factors involved. Register below and include a scenario of your current situation in the comments section and any other information that you think may be important, and we will contact you with 24-48 hours.

  • This will require coordinating the transfer of the property out of the trust into the borrower’s name (done in escrow) and typically requires at least some effort on the part of the Attorney and the cooperation of Trustee or Successor Trust
  • No Credit Check or Job History Required For Inheritance Advance
  • No Hidden Fees, or Transaction Fees
  • No Interest Payments or Monthly Charges

email: Rick Curtis

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Borrowing on the equity of a property while in probate to settle an estate or to pay debts is becoming very popular. At JCL, we use private investors and are able to fund real estate loans that conventional mortgage lenders will not. Our loans are based on the equity of one or more properties which may be in the estate. If needed, with an attorney’s assistance, Administrators, Conservators, Guardians, etc., can obtain court approval borrow the necessary funds to pay debts or settle an estate.

If You Are an Executor/Administrator

A person signing as an Executor or Administrator can obtain equity-based mortgages for up to 50-65% of the property value, per lender’s appraiser. This depends on the type and quality of the property.

Interest rate premiums for first mortgages are typically above the equivalent term of a conventional (“bank” type) loan. Loan fees, most of which are paid out of the loan, are based on the borrower qualifications, property condition and complexity of the file.

Loans to Executors and Administrators may take as few as 10-15 working days to close if you have full court powers and there are no objections to the loan from other persons. Otherwise, a court order must be obtained and may take from as few as several days to several weeks or more to accomplish.

So, what can you do with mortgage financing? Here are just a few examples:

  1. Pay attorney fees
  2. Arrange a buy-out by other heirs
  3. Resolve dispute “work-outs”
  4. Provide quick funds for probate emergencies
  5. Pay Medi-Cal and other creditors
  6. Stop foreclosure
  7. Pay delinquent taxes
  8. Money for repairs
  9. Pay settlements and fund other legal actions

If You Are the Trustee of a Trust

Trustees and Professional Fiduciaries can obtain equity-based mortgages for up to 50-65% of the property value, per lender’s appraiser. This depends on the type and quality of the property.

Interest rate premiums for first mortgages are typically above the equivalent term of a conventional (“bank” type) loan. Loan fees, most of which are paid out of the loan, are based on the borrower qualifications, property condition and complexity of the file.

Loans to Trustees and Professional Fiduciaries may take as few as 10-15 working days to close if the trust provides for powers to encumber (borrow against) the property and there are no objections to the loan from other persons. Otherwise, a court order must be obtained and may take from as few as several days to several weeks or more to accomplish.

So, what can you do with mortgage financing? Here are just a few examples:

  1. Pay for elderly care or living expense
  2. Pay Attorney Fees
  3. Arrange a buy-out by other beneficiaries
  4. Resolve dispute “work-outs”
  5. Provide quick funds for emergencies
  6. Pay Medi-Cal and other creditors
  7. Stop foreclosure
  8. Pay delinquent taxes
  9. Money for repairs
  10. Pay settlements and fund other legal actions

The information contained herein is intended for information purposes only and should not be considered legal advice. Seek competent counsel for advice on any legal matter.
email: Rick Curtis

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