Small Business

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Content marketing is a strategy that focuses on the creation and sharing of blogs, newsletters, videos, podcasts and other content that is useful to a business’s target audience. Business websites, social media platforms and email are often used to share this content, either directly or through embedded links.

When done correctly, content marketing can drive results that will ultimately boost a business’s sales and revenue. Here’s what you need to know when creating your content marketing strategy and how it fits into your business’s larger marketing goals.

What is content marketing?

Content marketing is a type of online marketing that uses written text along with video and audio media to capture the interest of a target audience. To do this, the content needs to be relevant and also offer something of value to readers, viewers and listeners. Content marketing can help a business develop and support its brand, demonstrate its expertise in the industry and keep its name in front of potential customers.

Benefits of content marketing

A business may want to consider including content marketing in its overall marketing strategy as a way to help:

  • Increase brand awareness.

  • Improve rank on search engine results pages.

  • Drive more visitors to its website.

  • Build stronger customer loyalty.

  • Add contacts to its database.

  • Generate new sales leads.

  • Increase sales and revenue, indirectly.

Types of content marketing

Written, visual and audio materials are all generally used in a business’s marketing efforts. What makes the materials used in content marketing different from other forms of marketing is that they don’t directly promote products or services, but instead focus on providing something useful to the target audience.

Blog articles

Articles are a staple of many content marketing plans. In addition to being available on a business’s website, articles can be highlighted and shared through social media posts and emails. Choosing topics that relate to your business can help to highlight your expertise in the industry, improve rank in search engine results and differentiate you from the competition.

Newsletters

Newsletters are a strong digital marketing method that’s often coordinated with email marketing. Email campaigns can be developed with the sole purpose of sharing a business’s newsletters. Social media platforms are popular ways to highlight your newsletter and share links to it. Newsletters can also be used to grow your contact database through sign-up forms offered on your website.

Social media posts

Posts on social media platforms can be used to highlight your industry expertise through relevant quotes and thoughtful comments and observations. Sharing behind-the-scenes photos of your business and employees can help demonstrate your culture and give your audience a better understanding of your unique business. Posts can also be a way to share links to new blogs, newsletters, videos and other types of content marketing.

Videos

Content marketing videos can be created to demonstrate products, provide step-by-step instructions and offer expert interviews, among other things. They can be as short as 15 to 30 seconds or run for a number of minutes. Checking a platform’s recommendations can help you choose an appropriate length. In addition to being posted on video-sharing sites, videos can be shared through other social media posts, email, newsletters and on your website.

Email

Emails can provide relevant industry news and other information that would be of interest to your target audience — in addition to introducing and providing links to other content such as newsletters, videos, surveys and e-books. When using email for content marketing, common call-to-actions such as “buy now”, “purchase here” and “order now” will typically be replaced with text such as “learn more,” “share” and “join.”

Infographics and other types of written content

Infographics, a visual representation of information and data, can grab your audience’s attention and are easy to share. Surveys, quizzes, checklists, games, calculators and tools are just some of the other types of written materials that can be created to share in content marketing — as long as they have value to your target audience and relate to your business.

White papers, e-books and presentations

White papers, e-books and presentations offer more in-depth content that can help establish the industry expertise of your business. They are often used to educate the audience on a particular topic and may be especially appealing to your ideal customer. It’s common to offer these materials free in exchange for the readers’ contact information. They can be shared through social media posts, emails and your website.

Podcasts

Podcasts, another type of content that can be used to demonstrate your expertise, can also help build brand loyalty, increase traffic to your website and add contacts to your database. Picking important topics that offer a learning experience for your audience can help establish you as a thought leader. Good audio quality is important when using this type of content, and your podcasting schedule can be shared through social media, email and other channels.

Webinars

Webinars can be used in ways similar to podcasts such as to raise brand awareness and generate leads for your business. However, live webinars can also provide an opportunity for you to engage directly with attendees. Again, select an interesting topic for your webinar that will offer a learning experience for your audience. Live webinars can be recorded, then shared through email, social posts and on your website.

Content marketing strategy

Focusing on the following elements can help you develop a content marketing strategy that prioritizes the needs of your audience but still falls within your marketing budget.

Goals: Keep them realistic

The primary purpose of content marketing is to attract and engage your target audience. Increased brand awareness and stronger customer loyalty are some benefits of content marketing, but they are also difficult to measure and take time to fully develop. Keep this in mind when setting goals. For example, a goal to have three videos “go viral” to build brand awareness would be difficult to measure and generally unrealistic for a business that doesn’t have a large social media presence. A more realistic and measurable goal might be to increase traffic to your website by a set percentage.

Budget: Factor in all the costs

Some types of content are more expensive to use than others once you factor in all the costs associated with creating, sharing and managing it. For example, committing to the creation of a weekly podcast and outsourcing the production would likely be quite expensive. In contrast, if you already have a writer on staff and an email marketing platform to engage your audience, creating a blog article can be a relatively inexpensive way to increase your outreach.

Audience: Review your target audience

Review the characteristics of your target audience and use the information to guide the types of content you want to create and your selection of channels for sharing. When your customers are primarily other business owners, for example, you might use email to share links to webinars, white papers and presentations. Or, if your target audience is predominantly young, then you may want to share links to infographics, surveys and quizzes through social media posts.

Content: Focus on quality

Engaging content is important to a successful marketing strategy. Prioritizing quality over quantity can lead to better results. Keep this in mind when determining what to create and how frequently. Marketing software with features such as artificial intelligence writing assistants, prebuilt templates and digital design tools can help you create content. If you choose to use these tools, include the additional cost in your budget.

Tracking: Identify key metrics

Some of your goals may not be tied to metrics, but you do want to track the success of your efforts where possible. Increased website traffic, higher search rankings for keywords associated with your business and a growing contact database can confirm the effectiveness of your efforts.

Google Analytics, social media platform tools and other marketing tools can help you track key metrics and identify successes that you may want to replicate in the future. For example, if an infographic shared on social media received a high number of likes, then creating additional infographics might also be well received.

Tips when creating content

Here are some tips that can be helpful when creating content for your marketing efforts.

Stay true to your brand

Your brand is composed of a number of elements, and the content you create should reflect those elements. Following your brand guidelines as far as colors, fonts, imagery and logos helps in building and maintaining a brand. Your brand voice, the language and personality used in communications, also needs to be clear and consistent in content and other marketing assets.

Keep it relevant, useful and authentic

Content that has value to your target audience is vital to successful content marketing efforts. Selecting topics that are relevant to your target audience gives you the opportunity to provide information they can use. Because content marketing is about building a relationship with your audience, steer clear of content that directly promotes sales, doesn’t deliver on its promise and isn’t helpful to your audience.

Customize your content for each channel

Sharing similar content on all your social media platforms, or crossposting, can save time and help you streamline your efforts. However, making a few edits to customize the content for each channel can help keep your audience engaged. Also, make sure the post is also appropriate for the channel. For example, a post for LinkedIn may not work well on Instagram.

Fully utilize content

Crossposting is not the only way to maximize the use of content you’ve created. Direct quotes from a blog article can be included in the email and social media posts used to share it. Blog articles could be created to summarize the information in white papers and podcasts. And inspiration can be drawn from webinars and other presentations to create related infographics, quizzes and tools.

Source: nerdwallet.com

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Life insurance is a highly important component of many people’s financial plans. One of the key reasons for this is because the proceeds from a life insurance policy can be used for multiple needs of one’s survivors, such as paying off debt, replacing income for everyday living expenses, and paying the high cost of the insured’s funeral and other final expenses.

If you are currently searching for the right life insurance policy, it is essential that you go with the right type of coverage, as well as the best amount regarding future anticipated needs. It is also recommended that you ensure that the insurance carrier you get the coverage through is secure and stable financially and that it has a positive reputation for paying out its claims to policyholders. One insurer that meets these criteria is Amica Life Insurance Company.

The History of Amica Life Insurance Company

Amica Life Insurance Company is the oldest mutual insurer of automobiles in the United States, with more than 100 years in the insurance business. Amica is a mutual insurance company, which means that it does not have stockholders, but rather the company’s policyholders are considered owners in the company.

The company was initially established in 1907 as The Automobile Mutual Insurance Company of America, and the first products offered by the company were automotive, fire, and theft insurance.

Over the years, it has grown and expanded and added additional product offerings to its mix. It has 44 offices around the United States. Amica Mutual Insurance Company is headquartered in Lincoln, Rhode Island.

Amica has several subsidiaries. These include:

  • Amica Life Insurance Company – This subsidiary of Amica offers both life insurance and annuity products, as well as some types of health and specialty products. This entity does business in all of the U.S. states except Hawaii. Amica Life Insurance Company was established in 1968.
  • Amica Property and Casualty Insurance Company – Amica Property and Casualty Insurance Company is also a wholly owned subsidiary of Amica Mutual Company. This entity provides auto insurance in New York and New Jersey. It was established in 2005.
  • Amica General Agency, Inc. – Amica General Agency, Inc., was founded in 1987, with the purpose of assisting with special or unique insurance needs.

As a mutual insurer, policyholders may be eligible for dividends – which can be taken as cash, or added to a permanent life insurance policy’s cash value, or used to purchase additional life insurance protection. (It is important to note that dividends are not guaranteed).

Amica Life Insurance Company Review

In addition to providing insurance coverage, Amica is also a key contributor to the communities in which it serves. For example, just one of how this company helps to build community ties is by sponsoring Habitat for Humanity.

Amica has also earned numerous awards and accolades throughout the years. These include:

  • Highest Customer Satisfaction Among National Homeowner Insurers from J.D. Powers for more than 15 consecutive years
  • Best Places to Work in 2017 from the Providence Business News and Best Companies Group. The company has been included in this list eight times.

Insurer Ratings and Better Business Bureau (BBB) Grade

Based on the company’s financial strength and claims paying ability, Amica Mutual Group has received a rating of A+ (Superior) from A.M. Best Company. Amica Life Insurance Company has also received an A.M. Best rating of A+.

Also, Amica has been an accredited business through the Better Business Bureau since January 1, 1957. The company has been given a grade of A+ from the Better Business Bureau, which is on an overall grade scale of A+ to F.

Over the past three years, Amica has closed out 79 total customer complaints via the Better Business Bureau, with 52 of these being closed out within the past year. Of the 79 customer complaints, 45 of these had to do with problems with the company’s products and services. Another 26 complaints dealt with billing and collection issues, six were related to advertising and sales issues, one was about delivery issues, and another one had to do with guarantee and/or warranty issues.

Life Insurance Coverage Offered Through Amica Life Insurance Company

Amica offers both term and permanent life insurance coverage options. With a term life insurance policy, there is death benefit protection only, with no cash value build up. Because term is considered to be the most basic form of life insurance coverage, it can often be quite affordable, especially for those who are young and in good health. Term life insurance policies will cover an insured for a certain length of time.

Permanent life insurance offers both death benefit protection and a cash value or savings component. The money that is inside the cash value portion of the policy is allowed to grow and compound on a tax-deferred basis, meaning that there is no tax on the gain until the time the funds are withdrawn.

Amica offers a level term insurance product that not only provides life insurance coverage for a set length of time, but that can also essentially be “customized” to best fit an insured’s personal needs.

These term insurance policies allow the choice of coverage for ten years, 15 years, 20 years, 25 years, or even for 30 years. During the period that is selected, the amount of the premium rate will remain the same – and, as long as the premium is paid, the policy will guarantee a level amount of life insurance protection up to the insured’s age 95. (With these policies, the coverage amount will also not decrease as the insured gets older).

Amica’s level term life insurance coverage also allows the option to add a cost of living adjustment rider. This provides the opportunity to offset inflation by increasing the face amount of the policy each year – at the same premium rate.

Also, the insured may also wish to take advantage of the conversion option, which can allow him or her to convert the term policy over into a permanent form of life insurance coverage. This option is available, regardless of the insured’s health.

The policy can also include a terminal illness rider, which allows the insured to receive a portion of the policy’s death benefits if he or she becomes terminally ill. These funds can help to pay for medical expenses or any other need that the insured sees fit.

Additional optional benefits and riders that can be available with the Amica level term life insurance policies include the waiver of premium, the children’s insurance rider, and an accidental death benefit rider.

Regarding premium price, Amica Life Insurance Company offers discounts for larger policies, and there are no policy fees. Also, an insured may be rewarded with a lower amount of premium if he or she is in excellent health, and they make healthy, positive lifestyle choices, such as exercising and eating right. For those who qualify for Amica’s better premium rate classes, there may be no need to take a medical examination as a part of the insurance underwriting process.

About permanent life insurance coverage, Amica Life Insurance Company offers whole life insurance. With a whole life insurance policy, the death benefit is guaranteed, and the cash value funds will grow at an interest rate that is set by the insurance company. Also, the amount of the premium cannot be increased – even as the insured ages, and if they contract an adverse health issue.

Whole life insurance is meant to cover an insured for the entirety of their lifetime – as long as the policy’s premiums are paid. And, the cash that is in the cash value portion of the policy may be either borrowed or withdrawn by the policyholder for any need or reason.

The whole life insurance from Amica also has some ways to customize the coverage to meet the needs of the insured better. For example, there is an early benefit provision, whereby if the insured is diagnosed with a terminal illness and given a life expectancy of one year or less, then they may receive advanced funds from the policy’s death benefit.

There are also additional optional benefits and riders, which include a waiver of premium, children’s insurance, accidental death benefit, and/or a guaranteed option to purchase additional insurance.

As with Amica’s term insurance policies, there can be premium discounts available for larger policies, and there are no policy fees. Also, Amica may reward an insured with lower premiums based on the insured having excellent health and lifestyle choices.

Amica also offers a simplified whole life insurance policy option. Here, the application and approval process is fast and easy and does not require a medical exam to qualify for the coverage. This coverage protects an insured up to the age of 120, and it guarantees level premium, never to increase – even regarding age or health condition. The premium payment on this simplified whole life insurance coverage option can be made monthly, quarterly, annually, or semi-annually.

The simplified issue whole life insurance plan is available in face amounts of $5,000, $10,000, $15,000, $20,000 or $25,000. There is no waiting period for coverage to begin, and there is a 31-day free look period for the insured to determine whether or not this is the right coverage for their needs. (And if not, they can return the policy and receive a full premium refund). Simplified issue whole life policies are often used to help survivors pay for funeral and other final expenses, as well as final medical bills and debt.

Other Products and Services Offered

In addition to providing life insurance protection, Amica Life Insurance Company also has additional products in its inventory, including:

  • Auto Insurance
  • Home Owners Insurance
  • Marine Insurance
  • Personal Liability Coverage
  • Condo Insurance
  • Renters Insurance
  • Motorcycle Insurance
  • Small Business Insurance
  • Wedding and Event Insurance
  • Investments
  • Retirement Annuities
  • Traditional and Roth IRAs

How to Find the Best Life Insurance Premium Quotes with Amica Life Insurance Company

If you are looking for the best life insurance premium rates with Amica Life Insurance Company – or on coverage from any insurance company – it is typically recommended that you work with an independent insurance agency or broker that has access to many different insurance carriers. That way, you can directly compare – in an unbiased way – the policies and the premiums of multiple insurance options, and from there you can more easily choose the one that may work best for you.

When you are ready to move forward with comparing life insurance policy options, we can help. We are an independent life insurance brokerage, and we can provide you with all of the essential information you need for making a well-informed decision. We can do so for you very quickly and easily, without having to meet with an insurance agent in person. In fact, you can receive the details that you need directly online from us. If you are ready to proceed, then just simply fill out our quote form.

We know how overwhelming it may be to look for the right life insurance coverage. There are many angles to consider – and you want to make sure that you are going with the best alternative for you. We can help you to find the coverage that’s best. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

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What Happens If the Executor of a Will Dies?

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When someone passes away, it’s up to their executor to handle the probate process. But what happens if the executor of a will dies? While that’s a rarity, it can create complications as someone else will need to fill the executor role. Naming a successor executor is one way to avoid that scenario and other contingencies that might affect the settlement of an estate.

Talking to a financial advisor can be helpful for planning ahead for any obstacles that may arise during probate.

An Executor Plays a Pivotal Role in the Estate Settlement Process

In estate planning, an executor is someone who is charged with settling the estate of a deceased person. When someone writes a will, they can name a person of their choosing to act as executor. If someone dies without a will in place or did not name an executor, any interested party may petition the probate court to become the executor.

What does the executor of a will do? Broadly speaking, they settle the estate during the probate process. The duties and responsibilities of an executor include:

  • Creating an inventory of the deceased person’s estates
  • Notifying creditors of the person’s passing
  • Liquidating estate assets to pay creditors if necessary
  • Distributing remaining assets among the decedent’s heirs, according to the terms of their will

Executors are obligated to follow a fiduciary standard when settling estates. That means they must act in the best interest of the decedent’s heirs at all times. If they fail to do so, an executor can be removed.

What Happens If the Executor of a Will Dies Before the Testator?

The testator is the person who makes the will and the person on whose behalf an executor acts during probate. If the executor of a will passes away before the testator, then a new one can be named. That may require the testator to amend an existing will or nullify it and draft an entirely new one to change the executor.

If the testator takes no action and doesn’t amend their will or write a new one, then it’ll be up to the court to name an executor once they pass away. Again, any interested person can petition the court to become the executor.

That takes the burden of naming an executor off of the testator. However, it leaves the door open for someone who may not be qualified to step into the role, or who might not have the wishes of the testator in mind when executing the will.

What Happens If the Executor Dies During the Probate Process?

If the executor dies during the probate process, a successor executor can step in to finish the estate settlement. That assumes, however, that the testator was forward-thinking enough to name one or more successor executors to prevent the estate from being left without one.

When there is no successor executor named in the decedent’s will, then the court will have to name one. If only one person has submitted a petition to become the executor, the job might go to them. However, if there have been multiple petitions submitted the probate court can weigh the merits of each one before deciding.

How to Avoid Complications If an Executor Dies

If you’re the person who’s making a will, the easiest way to avoid complications that may result from the death of an executor is to name one or more individuals to succeed them. That way, if the executor passes away before you do or during the probate process, there will be someone else waiting in the wings to take up the reins.

You could also consider putting some of your assets into a trust, which would allow them to bypass probate altogether. With a trust, a trustee is in charge of managing assets on behalf of the beneficiaries that you name. You’ll have to name a trustee in this case, which could be the same person as your executor but does not have to be.

Placing certain assets in trust could avoid complications following the death of an executor since the trustee would be responsible for distributing them anyway. Instead of waiting for probate to conclude, the trust beneficiaries would be able to access their inheritance according to the terms you set in the trust document.

The Executor’s Guide to Probate Bond

As mentioned, acting as an executor entails certain responsibilities and you’re obligated to follow a fiduciary code of conduct. Before someone can be appointed as an executor, the court may require a probate bond to be issued.

Probate bonds are designed to ensure that estate executors act in good faith and do not abuse their privileges. The bond protects the estate’s beneficiaries, not the executor, but the executor is the one responsible for purchasing it.

A probate bond is essentially an insurance policy against any financial losses that might occur if the executor abuses their power or otherwise mismanages the estate. The amount of the bond can correspond to the amount of the estate in question.

If all the parties involved in the settlement of an estate agree, then a waiver of bond can be submitted to the court. However, that can leave the beneficiaries of the estate open to losses if the executor fails to do their job properly.

How to Transfer Vehicle Ownership of the Deceased

One common question executors may have to deal with is how to transfer a car title after the owner dies. The answer can depend on several factors, including whether the car was owned by one person or multiple persons and whether any provision was made in a will for its transfer.

If the title to the vehicle has more than one name on it, then the surviving owner may inherit the vehicle automatically. They can change the title to put in their name only, without any further intervention from the executor.

When the title is in the name of the deceased owner only, the title will have to be changed to whoever is going to assume ownership. If the car is included in probate because it hasn’t been transferred to a trust, then you likely won’t be able to do that until probate ends and ownership of the car is assigned to one of the decedent’s heirs.

There are a few documents you’ll typically need to transfer a vehicle title after death:

  • A copy of the owner’s death certificate
  • The original title
  • Probate court documents allowing the transfer

The process for transferring vehicle ownership after someone passes away can vary from state to state. It may be a good idea to consult probate rules and the local DMV to determine what’s needed to complete the transfer.

How Much Does It Cost to Probate a Will?

The amount of money required to probate a will can vary by state. It’s common, however, for the cost to range anywhere from 3% to 8% of the estate’s value. In terms of what’s involved, the various costs can include:

  • Court filing fees
  • Attorney’s fees
  • Fees paid to accountants
  • Certificate fees for official documents
  • Notification fees if you’re required to publish a public notice for creditors
  • Probate bond fees
  • Appraisal fees if you need to determine the value of estate assets
  • Postage and mailing fees
  • Storage fees if you have to keep assets in storage before probate ends
  • Notary fees, if necessary
  • Fees paid to the administrator of an estate sale, if applicable

It’s the executor’s job to keep track of fees associated with probate and pay them out of estate assets. There is one exception, as executors who are required to purchase a probate bond must typically pay the fee for that themselves.

Also, keep in mind that the executor is entitled to collect a fee for their services. The fee can vary from state to state but it’s not uncommon for an executor to receive anywhere from 2% to 5% of the estate’s value for their time.

The Bottom Line

Knowing what happens if the executor of a will dies can help you to avoid headaches if you find yourself dealing with that situation when a loved one passes away. Taking care to build some protections into your own estate plan by naming successor executors or setting up a trust for certain assets can allow for a smoother probate process after you’re gone.

Estate Planning Tips

  • If you’re named as the executor to a will, it’s important to know what obligations you have and how to avoid any breach of fiduciary duty. Talking to a financial advisor can give you a better understanding of what’s expected of you. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you don’t have a will in place yet, you might want to consider drafting one. You could hire an estate planning attorney but it’s easy to draft a will online if you have a fairly simple estate. You may also consider adding a trust, power of attorney and advance health care directive to your estate plan to cover all the bases.

Photo credit: ©iStock.com/PeopleImages, ©iStock.com/shapecharge, ©iStock.com/kate_sept2004

Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.

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How Does an Inheritance Advance Work? – SmartAsset

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Taking an inheritance advance is something you might consider if you expect to receive money from an estate, but don’t want to wait for probate to conclude. An inheritance advance, also called a probate advance or probate cash advance, allows you to receive a lump sum of money upfront.

In exchange, you agree to allow the advance company to purchase part of the inheritance. An inheritance advance can put money in your hands quickly, but there are some drawbacks to keep in mind. We will go over the details.

Talking to your financial advisor can help you create a plan for managing an inheritance.

Understanding Inheritance Advances

An inheritance advance is an advance against assets you stand to inherit. It’s similar to a payday advance loan in that you’re getting access to money now that you would otherwise have to wait until later to receive.

An inheritance advance is not a loan since you don’t pay anything back to the lender directly. Instead, you’re allowing the advance company to make a claim against part of the inherited assets you expect to receive. Once probate ends, the estate can pay out the agreed-upon amount to the advance company and forward any remaining assets to you.

Here’s an example of how an inheritance advance might work. Let’s say that your parents leave you $100,000 in their will when they pass away. After probate fees and expenses are paid, you expect to inherit $90,000. But you need $25,000 right now to pay for your child’s college tuition expenses.

You decide to work with an inheritance advance company that requests to purchase 30% of the inheritance or $27,000. In the meantime, the company agrees to pay the $25,000 you need to you in a lump sum. Once probate ends, the advance company collects the $27,000 it purchased and the $25,000 that was advanced to you from the estate, along with its fee. The remaining inheritance money would then be paid out to you.

Benefits of Inheritance Advances

There are several advantages associated with inheritance advances, starting with fast and convenient access to cash. While a probate loan may take several days or weeks to get approved and funded, it may be possible to get an inheritance advance in as little as 24 hours after approval.

Inheritance advances typically don’t require any credit checks, which could make them a good option for borrowers with poor credit. You won’t pay interest on an advance, though again, the lender can charge a flat fee.

An inheritance advance is a flexible way to borrow since you can use the money to cover just about any type of expense. You don’t have to offer any collateral for the advance.

And you don’t have to worry about making payments either since the advance company collects the amount owed to it directly from the estate.

Drawbacks of Inheritance Advances

Taking an advance against an inheritance can have some downsides. And they may not be right for everyone. The obvious drawback is you’re sacrificing part of your inheritance for the convenience of being able to get cash today.

Going back to the previous example, you’d have to consider carefully whether handing over $27,000 plus fees to the advance company is worth getting the $25,000 you need now to pay for education expenses. You might find that another funding option may be preferable.

For instance, taking out a Parent PLUS loan or even a private student loan might be a better alternative. Or you might decide to get a home equity loan instead if you’re comfortable using your home as collateral.

When to Consider an Inheritance Advance

The best time to consider an inheritance advance is when you need money and you’re certain that an inheritance is coming your way. Inheritance advance companies may not advance money to you if there are any doubts about how much you’ll receive or whether you’ll inherit from someone at all.

You might get an advance against your inheritance if you need money urgently and you’ve considered all other borrowing options. Other possibilities for borrowing can include home equity loans, a home equity line of credit or a personal loan. For smaller expenses, you might consider a credit card instead.

If you’re considering an inheritance advance, it can be helpful to estimate how much money you’ll need. You can then shop around to compare inheritance advance companies to see what you might be able to get upfront. Talking to a financial advisor can help you weigh the pros and cons if you’re on the fence about whether an advance is the right move.

How to Get an Inheritance Advance

To get an inheritance advance, you’ll first need to find a company that offers them. You can search online for inheritance advance companies, as this type of funding usually isn’t available at banks or credit unions.

Next, you can look at the advance company’s requirements to see if you’re eligible for an advance. If you’re not sure whether you qualify, you can contact the company for a consultation. If you are eligible, you’ll need to share some details about the inheritance and provide certain documents, including:

  • Copy of the death certificate
  • Copy of the will if one is available to you
  • Probate petition and letters of administration
  • Valid ID

You’ll also need to give the advance company the name of the executor or trustee who’s handling the estate settlement. You won’t need to provide information about your income or credit scores.

Once the inheritance advance company has everything it needs, it will review your case and make an advance offer. If you accept the offer, the inheritance advance company will pay the money to you, sometimes as quickly as 24 hours later.

Choosing the Right Inheritance Advance Company

An internet search will turn up a number of results for inheritance advance companies, like inheritancefunding.com for example. But it’s important to find the right one to work with. When comparing inheritance advance options, it’s helpful to consider:

  • How much you can get from an advance
  • What percentage the advance company purchases
  • Any fees you might pay and when those are due
  • Funding speed

It’s also important to look at the company’s overall reputation. Reading customer testimonials and online reviews can give you a better idea of how easy an inheritance advance company is to work with and how satisfied its customers are.

Bottom Line

An inheritance advance can provide financial relief if you expect to inherit money. But time is of the essence. Taking an advance against inherited money does come at a cost, which is important to remember. Looking at all of the pros and cons, and considering other funding options, can help you decide whether an advance makes sense for you.

Estate Planning Tips

  • Planning out your entire estate can seem overwhelming and difficult. But a financial advisor who specializes in estate planning can help. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you have a sizable estate, estate taxes on either the state or federal level could be hefty. However, you can easily plan ahead for taxes to maximize your loved ones’ inheritances. For example, you can gift portions of your estate in advance to heirs, or even set up a trust.

Photo credit: ©iStock.com/shapecharge, ©iStock.com/PeopleImages, ©iStock.com/Drazen Zigic

Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.

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Source: smartasset.com

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What Is a Probate Loan and How Do You Get One?

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If you’re expecting an inheritance, you may be wondering how long it will take to receive it. You might consider a probate loan if you need funds sooner rather than later. A probate loan, also referred to as an estate loan, allows you to borrow money against a future inheritance. Probate loans can allow you to access money that may be coming to you following the death of a loved one sooner, but there are some potential disadvantages to keep in mind.

You can also talk to a financial advisor about how to handle an inheritance.

Probate Loans Basics

A probate loan is a loan against an inheritance that’s due to you. You’re borrowing money today against assets that you expect to inherit tomorrow. Like other loans, probate loans must be repaid to the lender with interest, and you’ll typically make payments while the estate is still in probate.

Why do probate loans exist? Simply because probate — the legal process by which someone’s estate is settled after death — can take months to complete. In some cases, probate can take years if the deceased person’s heirs bring challenges against the will or otherwise dispute the distribution of assets.

Probate loans allow heirs to benefit from an anticipated inheritance without the lengthy wait. That may be appealing to heirs who need money to pay for medical bills, unexpected expenses or day-to-day living costs.

How Does a Probate Loan Work?

A probate loan is similar in structure to other loans, in that you borrow a lump sum and repay the money in installments. The lender can charge interest on the loan, along with fees. In most cases, the lender will expect the loan to be repaid in full once the borrower receives their inheritance.

The difference between probate loans and other types of loans lies in what’s needed for approval. While a probate loan lender might check an applicant’s credit score or income, the primary concern is the inheritance itself.

Lenders need to be able to verify that the applicant will receive an inheritance and the amount. Once that’s established, the lender can shape the loan terms, including the loan amount, interest rate and repayment schedule.

Loan amounts are usually a percentage of the inheritance. For example, you might be able to borrow up to 75% of what you expect to inherit. The interest rate on a probate loan can vary by lender but it may be typical of what you’d get with a traditional personal loan.

Probate Loan Advantages

The main benefit or advantage of getting a probate loan is that it allows you to tap into any inherited funds you expect to receive early. You don’t have to spend months or even years waiting for probate to conclude to start putting your inheritance to work.

Probate loans can be used to cover virtually any expense you choose, which could make them a good option if you need to pay for things like:

  • Home repairs or improvements
  • Higher education expenses
  • Medical bills
  • Emergency expenses

You might prefer a probate loan to other loan options, such as a home equity loan or personal loan. While home equity loans can put a lot of cash in your hands, depending on how much equity you have, they require you to use your home as collateral. Personal loans also allow for flexibility, but you might not be able to borrow as much as you could with a probate loan.

Probate Loan Disadvantages

Probate loans can offer convenience, but they can also be problematic for certain borrowers. For instance, having to make monthly payments toward the loan while you’re waiting for probate to wrap up could place an additional strain on your budget.

A probate loan can be an expensive way to borrow if the lender charges a higher interest rate or tacks on steep fees. A general lack of regulation around these loan products means that borrowers must tread carefully and do thorough research in order to find a reputable lender.

Taking out a loan against your inheritance can also be less than ideal if the estate you’ll inherit from is in dispute. For instance, say your parents pass away, leaving everything to you and your two siblings. Your parents had a will that specified you should get 60% of their assets, since you acted as their caretaker in their final years, while your siblings should get 20% each.

Your siblings decide to contest the terms of the will because they believe that your share of the inheritance is unfair. In that case, attempting to take out a probate loan could stoke the fire if the will contest created conflict between the three of you. You can ask a financial advisor about whether they think a probate loan is a good idea.

Probate Loan vs. Probate Advance

When discussing probate loans, you might also hear the term “probate advance” or “probate cash advance”. While they might sound the same, they’re actually two very different ways to borrow against an inheritance.

With a probate loan, you get a lump sum of money from your inheritance. You then make payments back to the lender in installments with interest, with the remaining amount due paid in full once the inheritance is paid out to you. Any leftover inheritance proceeds remaining after the loan is paid are yours to keep.

A probate advance is an agreement in which the lender purchases part of your inheritance. For instance, say you stand to inherit $100,000 from your parents after probate fees and other expenses are paid. You might enter into an advance agreement that allows the lender to purchase 40% of the inheritance.

You get $30,000 now and when probate ends, the advance company collects the $40,000 it purchased, plus the original advance amount and its fee. Any remaining inheritance funds are paid to you. If your inheritance turns out to be less than expected, you wouldn’t have to pay anything back to the advance company.

How to Get a Probate Loan

If you’re interested in getting a probate loan, you can start by searching for lenders that offer them. You typically won’t find probate loans at a bank or credit union. These loans are usually offered by companies that specialize in inheritance financing.

As you’re shopping around for a lender, it’s important to consider:

  • Loan amounts and how much you might be able to borrow
  • Repayment terms
  • Loan interest rates and fees
  • The lender’s overall reputation

Once you find the right lender, you’ll need to provide them with some information about you and the inheritance. The lender will verify the inheritance amount in order to determine if they can help you. If so, you’ll need to fill out an application for the probate loan.

Assuming that you’re approved, you should have a chance to review the loan terms and details. If you agree to the loan terms, the lender will provide you with funding, which you can start using right away. In the meantime, you’ll need to make payments to the lender as specified by the loan agreement.

The Bottom Line

Probate loans can be an attractive way to borrow against an inheritance, but it’s important to consider the pros and cons. You may appreciate being able to get money today if you need it, but there may be trade-offs you’re making in the long term. If you’re considering a probate loan, it’s a good idea to compare lenders to see what kind of loan terms you might qualify for. It’s also wise to be clear on whether you’re getting a probate loan or a probate advance, as they don’t work the same way.

Estate Planning Tips

  • Inheriting money can raise questions about how to make the most of those assets. It can be helpful to talk to a financial advisor about the best ways to use an inheritance, which might include paying off debt, funding an early retirement or covering college expenses for your children. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Have you started planning your own estate yet? If not, there’s no time like the present. The most basic element of any estate plan is a last will and testament. If you don’t have a will, you can create one using an online will-making software program. You may want to talk to an estate planning attorney if you have a more complex financial situation or if you think you might need to create a trust along with a will.

Photo credit: ©iStock.com/stocknshares, ©iStock.com/kazuma seki, ©iStock.com/Kameleon007

Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.

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Source: smartasset.com

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A new bill written up by California Assemblymember Bob Blumenfield (D-San Fernando Valley) calls for a $20,000 fee to be charged to banks for every foreclosure they carry out in the state.

Aimed at reducing foreclosures in the hard-hit region, Assembly Bill (AB) 935 would fine mortgage lenders or loan servicers $20,000 per foreclosure in the form of a “foreclosure mitigation charge,” creating incentives to offer loan modifications or refinance alternatives.

Blumenfield said each foreclosure costs the local governments an average of $20,000 in the form of public safety calls and arrests, unpaid property taxes, inspections, trash removal, lawn maintenance, and other expenditures.

Each borrower loses some $7,000 in fees, and each foreclosure lowers neighboring home values by one percent.

The bill would supposedly generate up to $16 billion over the next two years, as nearly 800,000 foreclosures are expected in the Golden State.

So where would the money go?

AB 935 wound send 20 percent of the proceeds to K-14 public education, 20 percent toward public safety, 20 percent to redevelopment activities, 20 percent to cities and counties to pay for mitigating the effects of foreclosures on communities, and 20 percent toward small business loans.

California has seen more foreclosures than any other state, and is expected to see two million homes go through the process between 2008-2012.

This translates to roughly $632 billion in lost home value, $3.8 billion in lost property tax revenue, and $17.4 billion in costs borne by local governments.

For Los Angeles County during the same period, 381,000 foreclosures are expected, resulting in $150 billion in lost home value, $918 million in lost property taxes, and $2.8 billion in maintenance costs to local governments.

Source: thetruthaboutmortgage.com

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A couple weeks ago, J.D. had a conversation with some friends about starting a small business. I liked a lot of what was said, but I’ve had some different experiences, and would like to offer my perspective. Here are some things I’ve learned from my entrepreneurial endeavors.

Starting a business with friends can be fantastic
Both of the companies I’ve co-founded have been with long-time friends, and while of course there were hard parts about it, in many ways it was a huge help.  We knew each other well enough to figure out how the other would react in a lot of situations, and had a base level of trust that is always helpful.  Of course there are plenty of counterexamples, but it can work.

What matters is that you have a partner with whom you can communicate — if that person is a friend, great.

Write someone and ask them for help every day
It’s amazing how well this works.  Just make a habit of coming up with one person each day that might be able to help you in some way — with an introduction, an idea, a conversation, anything. If you think of someone you already know, then it’s easy to ask for help, but don’t be bashful about asking people you don’t know for help.

When you tell people you’re working on starting your own business, many of them will get excited or interested, and be willing to offer a hand. Don’t be discouraged if you don’t hear back — just try someone else the next day. When you’re starting a new business no one knows what you’re up to, so reaching out and asking for help very often can do an enormous amount to get things rolling.

People matter more than anything
When you’re looking for partners, employees, attorneys, accountants, or anyone else to be a part of your business, find someone you really get excited about working with, or just keep waiting and looking.  Don’t get caught up thinking you need someone, just anyone, to support you.  It’s far better to wait for a star.

The early people in any company shape everything about it — its enthusiasm, public face, ethics, and quality. You can’t afford to have any of those aspects be anything less than stellar when you’re starting your own business. (If you’re not sure about a person, try using them as a contractor first, and bring them on full-time when you’ve had more time to evaluate them.)

Don’t worry about the idea
Entrepreneurs often get all worked up — or hung up — on The Idea; that is, what business exactly they’re going to pursue. Don’t worry so much about The Idea. Choose something you know a lot about and see a need for, and go for it.

The people you work with matter more than The Idea; hardworking, talented people working on the wrong idea will figure that out and adjust, while the wrong people on the right idea are likely doomed anyways.

The only thing that really matters about The Idea is how you (and your partners) feel about it.  If you can’t stop thinking about it for weeks on end, get up out of bed to write down brainstorms about it, and don’t get tired of working on it, that’s the right idea.  If you have to convince yourself to keep going on The Idea, that’s the wrong one.

Take money from other people as an absolute last resort
Many entrepreneurs get an idea, write up a presentation about it, and hit the road looking for angel or venture capital investors.  Don’t do that.

First, investors will always prefer to invest in running, growing businesses, not ideas; and second, you will immediately give up control of your business to people you likely don’t know very well.  Supportive, patient investors definitely do exist, but they are the rare exceptions.

Take investment only to accomplish a specific goal for your existing business that you know you can’t achieve any other way.

Know your customers
Do everything you can to put yourself in direct, frequent contact with the people who will be giving you money — your market.  When selling to consumers, make sure you’re talking to someone who would actually have a pressing need for whatever you’re selling; when selling to companies, make sure you’re talking to the person who could actually authorize a purchase of whatever you’re selling.

Anyone in your company shaping its products or services should be in direct, frequent contact with your market, too.  Listen to your market.  Talk to them all the time.  Ask them if what you sell is working for them, and take everything they say seriously.

Most importantly: ignore every other source of “feedback” — competitors, reviewers, two-bit commentators, whatever.  If what these other sources have to say matters, you’ll hear it from your market directly.  If you don’t, what the other sources say is irrelevant.

Have confidence in yourself
Things are going to suck for a while, pretty often.  You’ll win sometimes and lose sometimes, often on the same day.  Take care of your home life, make sure you have great support from your family and friends, and listen to your gut.  These simple, basic steps will get you through the dark times that inevitably come, and lead you to the rewards that can follow.

Treat people well
Most entrepreneurs fail several times before they have a success.  If you can fail with your integrity intact, you’ll build a network of people ready to help you when you’re ready to try again.

Source: getrichslowly.org

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My friend Nicole and her family visited our house for breakfast this morning. She and her husband are the founders of Green Ronin, a Seattle-based game publisher. As we enjoyed a couple lovely hours outside at the picnic table, we chatted about life and work. We talked about what it’s like to own a small business.

Because my father was a serial entrepreneur, I’ve spent most of my life around small businesses. Chris and Nicole have had a taste of the lifestyle over the past eight years. They’ve seen the bright spots and the dark, and have some strong opinions about entrepreneurship.

“What sort of advice do you have for somebody who might be starting a small business?” I asked. Here are the highlights of our conversation:

  • Be wary of going into business with your friends. Though it sounds like a good idea, working with friends is often a recipe for disaster. “At the very least, partnerships with friends prevent you from being effective,” Nicole said. “You don’t say the things that should be said, or in the way that you should say them. You pull your punches.”
  • Do your research. “I think it’s important to know what you’re getting into,” Chris said. “You can’t be successful by just jumping into an industry without having some idea of how it works. I didn’t just start publishing games, for example. I started by writing for somebody else. I had to learn about how a game company operates.”
  • Start slowly. We all agreed that small business owners should move slowly. “We started Green Ronin in our spare time,” Nicole said. “Chris still has a full-time job outside the company.” By starting small, you’re able to control growth and focus on what’s important. Starting small also keeps things manageable. During my sixteen years working at the box factory, I saw all sorts of businesses come and go. Many of those that failed had tried to grow too quickly.
  • Embrace guerilla marketing. “You can spend thousands of dollars on traditional marketing and see poor results,” Chris said. “We’ve placed big ads in magazines that just didn’t work. But it’s possible to spend much less on non-traditional approaches that get better results. For example, one way for us to introduce people to our products is to give away quick-start guides to our games at large conventions.” Think outside the box.
  • Create boundaries. We began to discuss how much time our businesses take, and how I always seem to be working on Get Rich Slowly. “You need to create boundaries,” Nicole said. “A lot of people think that they can just work from home and enjoy a life of leisure. It doesn’t work that way. I wish I had better boundaries. My workspace is in a corner of the kitchen. It’s too easy to find myself answering e-mail at one in the morning.”

In the end, we all agreed that owning a small business offers advantages over a traditional job, but it also has its drawbacks. The best part, of course, is being involved with something you love on a daily basis. Unfortunately, that can be the worst part, too!

Here are some related posts from the archives:

This post is part of the Money Blog Network group writing project for July. Here are articles from other participants:

Starting a small business can be scary, but it’s also a great way to make money doing what you love.

Source: getrichslowly.org

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American Express and Square partner to launch a new small business credit card for Square sellers in the U.S. Square will announce additional details about the card and benefits next year.

Press Release

Sounds like it will be available only to Square sellers. We don’t have many details on the card at this point.

Source: doctorofcredit.com