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Action to Recover Loan by Executor

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xcaptain2

Guest
What is the name of your state? Pennsylvania.

Executor to the estate located loan file on me (beneficiary to estate). Loan (verbal agreement) was made in 1983 for use in purchase of a car and a home. I provided documentation (1983) to parents on the loan now located by Executor. In January 1987 last payment was made to parents and I reconciled all payments made to their Bank statements – the balance due of about $12,000 was then gifted (verbal) and balance due went to zero. No loan activity since January 1987 from parents or me. Do Pennsylvania Statutes of Limitations apply?

If not then will parents verbal gifting words hold up in court when sworn to by me, my wife and I believe a 2nd gifted beneficiary? Please note that 2 other beneficiaries may not have received verbal gifting (4 beneficiaries in all with equal shares) – 1 (also the Executor) may have a loan older that mine (paid – unknown) and number 2 cited in the will for $1,000 loan (baggage from in-law) now due. However, they were also gifted based on verbal to me and my wife. A further complication is that 2 beneficiaries (not me) opened an estate lock box and 1 beneficiary reviewed, etc... its content on these loans and other estate matter before Executor took possession of the box. The Executor to the estate was known for years by all parties.

Executor now seeks my cancelled checks, etc… on loan and says he plans to reduce my share related to the $12,000 and/or recover it for the estate -- no formal loan files maintained by parents. Do I provide access to requested checks, etc… for his review? Should I provide copies of my personal loan info?
 


Dandy Don

Senior Member
Someone forgives you of $12,000 and you didn't have the presence of mind to ask for anything in writing to substantiate this? What were you thinking? A vergal agreement will not hold up in any state's court. You have now learned a very expensive lesson.

Your posting is a bit vague/confusing because you have left out some details.

Are you related in any way to the decedent?
Was this money loaned to you by one of your parents?
Exactly where was the loan file kept or where was it located/found?
When you say you provided "documentation to parents on the loan" do you mean your parents or to the parents of the decedent?

Have you seen the will to see if it says anything about the loan being forgiven? Have you asked the executor to let you see the loan file papers (so you can see if there is any notation on the paperwork about the loan being forgiven--but don't let the executor know that this is the reason you want to see the papers)? Since executor has basically made his mind up to get this money from you there would be no advantage for you to provide him with any requested copies of cancelled checks, even if you had convenient access to them.

Get affidavits from anyone who knows anything about this and also have at least one of the people giving the affidavit to mention that it is a common and frequent principle of people making their wills to forgive a beneficiary's outstanding debt. Not sure how much good it will do or how effective it will be or how seriously the executor will regard it, but at least you will have made an effort. And at some time soon before probate closes or soon after it closes, if possible, try to review the way the estate has been distributed (or have someone else do it) to make sure that the $12,000 deducted from your share of the estate is not misappropriated by the executor by being hidden somewhere else and try to have an independent party verify/confirm that the distribution has been handled fairly and honestly.
 
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xcaptain2

Guest
Thanks for the info. But, maybe the bottom line is that there was no loan activity since January 1987 from parents or me. Do Pennsylvania Statutes of Limitations apply?
 

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