question about 1/4 beneficiary with commercial loan/mortgage attached to deceased

[philadelphia800]

PA

i am a 1/4 beneficiary to an estate of a friend along with 3 cousins, one cousin is now deceased. none of us were related to deceased, only friends. I had entered into a 15 year commercial loan agreement with the deceased 7 years ago, this agreement stated we were both equal partners in this loan, the deceased used a residence deeded solely to their estate as collateral and i used a rental property deeded solely to myself. the agreement states that a default would occur if either party were to die during the 15 years. upon sale of the deceased's residence attached to the loan the remainder of the loan was paid and the loan was completed. now the executor is asking me to sign a statement saying i give my right as 1/4 beneficiary to receive anything further from the estate in lieu of the commercial loan being paid off. the executor is also the father to the other 2 living beneficiaries of the estate. if i was not a 1/4 beneficiary to the estate the commercial loan would have had to be paid off anyway in order for the deceased's residence to be sold, regardless if i was to inherit anything remaining of the estate. is this wrong for the executor to ask me to give away my rights as a beneficiary? i don't think this is how my friend and business partner had planned for this to go. thanks

 

[curb1]

These should be two totally separate transactions. Firstly, the payoff of the commercial loan agreement. Then secondly the satisfaction/rights as a 1/4 beneficiary of the estate. Ask the executor about his reasoning in making the offer. You should be able to tell from his answer if his intentions are honorable. Remember you do not have to agree to his proposal. Let us know how he responds.

 

[latigo]

PA

i am a 1/4 beneficiary to an estate of a friend along with 3 cousins, one cousin is now deceased. none of us were related to deceased, only friends.

I had entered into a 15 year commercial loan agreement with the deceased 7 years ago, this agreement stated we were both equal partners in this loan, the deceased used a residence deeded solely to their estate as collateral and i used a rental property deeded solely to myself.

the agreement states that a default would occur if either party were to die during the 15 years. upon sale of the deceased's residence attached to the loan the remainder of the loan was paid and the loan was completed.

now the executor is asking me to sign a statement saying i give my right as 1/4 beneficiary to receive anything further from the estate in lieu of the commercial loan being paid off. the executor is also the father to the other 2 living beneficiaries of the estate. I

If i was not a 1/4 beneficiary to the estate the commercial loan would have had to be paid off anyway in order for the deceased's residence to be sold, regardless if i was to inherit anything remaining of the estate.

is this wrong for the executor to ask me to give away my rights as a beneficiary? i don't think this is how my friend and business partner had planned for this to go. thanks

Seems like a case of you not only wanting your cake and the pleasure of eating it, but insisting on double dipping into the ice cream pail. But whatever . .

Anyhow, if I were the attorney for the executor or one of the beneficiaries I would be urging that a lawsuit to filed against you seeking contribution from you for one half of this “equal partners commercial loan” that was retired via the sale of the deceased’s residence!

Plus making a claim that the estate to be subrogated to the lender’s security interest you somehow seem to have granted the lender by deeding a “rental property deeded solely to myself”, whatever that garble is supposed to mean or to have achieved.

Also I would be advising the executor that no distribution be made to you until the results of the lawsuit were in.

 

[philadelphia800]

Seems like a case of you not only wanting your cake and the pleasure of eating it, but insisting on double dipping into the ice cream pail. But whatever . .

Anyhow, if I were the attorney for the executor or one of the beneficiaries I would be urging that a lawsuit to filed against you seeking contribution from you for one half of this �equal partners commercial loan� that was retired via the sale of the deceased�s residence!

Plus making a claim that the estate to be subrogated to the lender�s security interest you somehow seem to have granted the lender by deeding a �rental property deeded solely to myself�, whatever that garble is supposed to mean or to have achieved.

Also I would be advising the executor that no distribution be made to you until the results of the lawsuit were in.

latigo:

the agreement we engaged in stated that in the event of either partner's death this would be considered a default of the loan. in the event of that default it stated the sale of that partner's real estate would be used to pay the loan. this was how the deceased planned this, not I. the deceased wanted to be a silent partner in a property management business, not a landlord. the deceased wanted the rental to be paid off from proceeds of their residence this is why the rental property was deeded solely in my name. the deceased did not want the rental property to be sold off as one of their assets in the estate in the event that she died before I.


curb1:

thanks for the advice.

i told the executor i did not believe that this was the deceased's intention as evidenced in the paperwork, and that i would not agree to sign this. i have since received a receipt, release, refunding and indemnification form. this says that a partial distribution is to be made to myself and the other heirs if:

1. i acknowledge that they approve the decision to distribute this partial distribution as follows: (lists me and other heirs with an equal amount)
2. waive the filing of an Account prior to this partial distribution.
3. acknowledges that they will receive this partial distribution upon all parties signing and returning form
4. releases current executor from all liabilities...
5. agrees to refund to the executor any portion of the distribution to which i am not properly entitled, and, to the extent of said distribution, to indemnify him for all claims made against him as executor, and to reimburse him for all expenses and costs incurred in connection with any such claims.
6. declares that this instrument shall be legally binding upon me, my personal representatives, successors, and assigns.

is this common for the closing of the estate? why would there be a partial distribution, it has been 2.5 years since the death. could this be used against me if i sign this and they hire a lawyer such as latigo would suggest? just in the very shady way the executor tried to lull me into signing my rights to the will away has made me question this agreement, and anything else that would come from the executor and his lawyer.

 

[LdiJ]

latigo:

the agreement we engaged in stated that in the event of either partner's death this would be considered a default of the loan. in the event of that default it stated the sale of that partner's real estate would be used to pay the loan. this was how the deceased planned this, not I. the deceased wanted to be a silent partner in a property management business, not a landlord. the deceased wanted the rental to be paid off from proceeds of their residence this is why the rental property was deeded solely in my name. the deceased did not want the rental property to be sold off as one of their assets in the estate in the event that she died before I.


curb1:

thanks for the advice.

i told the executor i did not believe that this was the deceased's intention as evidenced in the paperwork, and that i would not agree to sign this. i have since received a receipt, release, refunding and indemnification form. this says that a partial distribution is to be made to myself and the other heirs if:

1. i acknowledge that they approve the decision to distribute this partial distribution as follows: (lists me and other heirs with an equal amount)
2. waive the filing of an Account prior to this partial distribution.
3. acknowledges that they will receive this partial distribution upon all parties signing and returning form
4. releases current executor from all liabilities...
5. agrees to refund to the executor any portion of the distribution to which i am not properly entitled, and, to the extent of said distribution, to indemnify him for all claims made against him as executor, and to reimburse him for all expenses and costs incurred in connection with any such claims.
6. declares that this instrument shall be legally binding upon me, my personal representatives, successors, and assigns.

is this common for the closing of the estate? why would there be a partial distribution, it has been 2.5 years since the death. could this be used against me if i sign this and they hire a lawyer such as latigo would suggest? just in the very shady way the executor tried to lull me into signing my rights to the will away has made me question this agreement, and anything else that would come from the executor and his lawyer.

You need your own attorney on this issue. You should not be attempting to handle this without one.