Can a good friend of mine, who is in a nursing home, loan me money to purchase a house?

UPDATED: Apr 11, 2012

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Can a good friend of mine, who is in a nursing home, loan me money to purchase a house?

A good friend of mine is in a nursing home here in Ohio. He is private pay ($6,000) a month with a liquid assets being $500,000. He wants to loan me money ($150,000) to purchase a home. There will be a contract with terms of repayment. Is he able to do so?

Asked on April 11, 2012 under Estate Planning, Ohio


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Whether or not your good friend can lend you the $150,000 that you are writing about from a legal perspective is whether or not he is legally competent to do so. Before he loans you the money, I suggest that you consult with a close family member of his about the proposal and if the family member approves such (there may be a power of attorney in place), have a lawyer draft up the promissory note and the trust deed to be signed by the lender, yourself, and the family member assuming the lender is legally competent to make a loan. For that, his treating doctor's opinion as to competency should be given in writing.

The last thing you want to be involved with is a claim that you engaged in elder abuse by taking advantage of the friend who is in the Ohio nursing home.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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