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What constitutes a Loan

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Xfactor

Junior Member
What is the name of your state? Ohio

My grandfather gave me $xx in 2005 to help me purchase my car. We had an understanding that if i was able i would pay him back, as long as he was alive. He passed away this past spring, and his eldest son whose mental condition is debatable is the person now in charge, of the trust

He has sent me by way of an attorney a letter stating i have to pay him back this money. I have managed to pay back 2/3 of the money i was given. But i do not really have any way to show this as some payments were made in cash, and he and i did not keep records of it( now i see this was a huge mistake). The letter stated that if i do not reply within 30 days they will start court proceedings.

I do not believe there are any documents signed between my grandfather and myself, that would show some sort of contract.

So i have two questions, is there anyway to find out what information my uncle is using to say i have been loaned this money?( he will not willingly provide me anything as he will not speak to me)

and
What is meant by court proceedings...what does that mean to me...i do not have an attorney nor do i really have money to afford one.

Thank you for any help or insight anyone can offer on this.
 


BoredAtty

Member
So i have two questions, is there anyway to find out what information my uncle is using to say i have been loaned this money?( he will not willingly provide me anything as he will not speak to me)
There is no way to force him to give it to you before a lawsuit is initiated. After the trust files a lawsuit, he'll have no choice but to provide such information, as he must prove that a loan existed.

What is meant by court proceedings...what does that mean to me...i do not have an attorney nor do i really have money to afford one.
He probably means a lawsuit.

Just a thought, but if he has records of you paying on the loan, then he may use that to prove that a loan existed. Of course, then you will use to same evidence to prove that you do not owe the entire amount of the loan. And you can always defend yourself by stating that the loan did not need to be repaid after your g'father's death.
 

Zigner

Senior Member, Non-Attorney
And you can always defend yourself by stating that the loan did not need to be repaid after your g'father's death.
Without "proof", that won't get far. If OP admits it was a loan, it will be exceedingly difficult to "prove" that it should change to a gift just because grandpa died. Any loans I've had from my grandfather were recorded very accurately in my grandfather's records. When he passes, I will certainly owe the estate any amount that were loaned and not repaid. Short of some documentation, the administrator of the estate would be required to diligently pursue repayment of this debt.
 

BoredAtty

Member
Without "proof", that won't get far. If OP admits it was a loan, it will be exceedingly difficult to "prove" that it should change to a gift just because grandpa died.
Given that the terms of the loan were never recorded on paper, they can only be proved with testimony and subsequent conduct. All it will take is the judge believing the testimony of the OP...nothing more. Neither you nor I have any reason to hypothesize about the chances of that happening.
 

Zigner

Senior Member, Non-Attorney
Given that the terms of the loan were never recorded on paper, they can only be proved with testimony and subsequent conduct. All it will take is the judge believing the testimony of the OP...nothing more. Neither you nor I have any reason to hypothesize about the chances of that happening.
Our OP has made payments totaling 2/3 of the amount loaned. That would speak volumes...

But you're right - neither of us could guess what would happen in SCC.
 

BoredAtty

Member
Our OP has made payments totaling 2/3 of the amount loaned. That would speak volumes...
That subsequent conduct would help to prove that a loan existed, but it's of no help in determining whether the loan would be extinguished upon the grandfather's death.
 

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