Can the executor of an estate make a loan to someone purchasing an asset?
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Can the executor of an estate make a loan to someone purchasing an asset?
My father passed away and named my stepmother the executor. She now wants to sell my dad’s truck to her son (not a beneficiary in the Will) for half the price and allow him to make payments to the estate for the remaining balance. is it legal for her to do this?
Asked on September 6, 2011 under Estate Planning, New Jersey
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss. Here is the problem: an executor has the ability to act independently but only in the best interests of the estate. So that means that they are not immune from being challenged if you think that they are going against the interests of the estate and the beneficiaries. You need, though, to seek help with this from an attorney in your area and that could be costly. Or you can see if you can challenge the transaction by requesting that the executor account for the transactions. You may really want to have her removed for a breach of her duties because if she does it once she may continue to do it to the detriment of the estate and the beneficiaries. Good luck.
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