Can the executor of an estate make a loan to someone purchasing an asset?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 10 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.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption