LOAN TO FRIEND

[DENNISS]

ESTATE HAS 2 HEIRS. ESTATE HAS OUTSTANDING LOAN ON 2 RESIDENCES THAT STATES BOTH PROPERTIES MUST SELL TO SATISFY LIEN. BOTH HEIRS WISH TO SELL RESIDENCE #2. I WISH TO LOAN MONEY TO HEIR #1 (EXECUTOR)TO PREVENT FORECLOSURE ON RESIDENCE #1 (WILLED TO HEIR #1)BUT PROTECT MY MONEY FROM HEIR #2. EXECUTOR HAS NO OTHER RESOURCE & WILL SELL RESIDENCE #2 THAT IS WILLED TO HEIR #2 BUT NOT INHABITED BY. ONCE RESIDENCE #2 IS SOLD, I AM TO BE PAID BACK LOAN & RESIDUAL FROM SALE GOES TO HEIR #2. WILL A PROMISORY NOTE AGAINST HEIR #1 OR AGAINST THE ESTATE PROTECT ME? DO I NEED TO NOTORIZE NOTE?

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Well, a promissory note indicating a loan has been made to heir 1, signed, notarized with a check indicating this is a loan expected to be paid back in full upon sale of residence #2 will definitely make sure all know exactly what the money is for.

Then, if no money upon sale of residence #2, you have a legally binding agreement of which you can charge against heir 1 to collect.

I don't know how charging the estate would work without gettting too many things complicated because all debts the executor must pay of the estate are those debts incurred by decedent not by heir.

Try reading Contract law at the freeadvice.com homepage to help you come up with a good promissory note/agreement/loan document.