I borrowed money from my parents who died a few years ago, can the heirs of the estate recover the loan?
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I borrowed money from my parents who died a few years ago, can the heirs of the estate recover the loan?
My borrowed 50,000 from my parents around 10 years ago, and they passed away around 5 years ago. My brother has a will from my parents which names him as the sole heir. The will does not specifically talk about this loan, only that all assets should go to my brother. There were no formal loan documents with my parents, only an IOU note signed by myself, which my brother now has. Am I obligated to pay him?
Asked on May 29, 2017 under Estate Planning, Alaska
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
The IOU constitutes legal evidence of the debt. Accordingly, it is an asset of the estate so the executor has the right to recovoer such an asset (i.e. the repayment of the loan). Bottom line, while you do not owe the money directly to your brother, you do owe it to the estate.
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