Borrowed from Estate

[Utahman]

What is the name of your state (only U.S. law)? Utah

My brother-in-law borrowed money from his father (recently deceased) and mother (not involved in family finances). His father had him sign a note that said (in effect) that this debt would be deducted from his share of the inheritance. To my knowledge there is only one copy of this note which was kept in a fire proof box at his father's home. My father-in-law passed away recently and my brother-in-law removed this paper from the box. He has been asked to return the paper. I'm nervous that he will not honor this commitment especially since he is the executor of the will. My mother-in-law is very passive and will not enforce this document. Any suggestions?

 

[anteater]

Who are the beneficiaries under the will? Those are the interested parties that will need to ensure that the agreement is enforced.

I don't know Utah probate procedures, but I assume that there is time period during which the interested parties can object to BIL's appointment. While I doubt that the court would refuse appointment, that could provide an opportunity to get all the cards on the table.

 

[Utahman]

Thank you for your reply. The beneficiaries are the four children. Two sisters and two brothers. Both brothers owe money to the estate by signed documents with their father (to be deducted from their inheritance if not paid prior). The sisters ( and me) want to make sure that these documents are honored because the loan in one case is for 60k. If we can get the document, should we make copies so there's a back up document or place it on file with an attorney, etc. Is the document enforceable legally if signed by both parties? Whats to prevent the brother for saying that he paid that money back?

 

[anteater]

While you may be very interested, remember that you are not an interested party.

If we can get the document, should we make copies so there's a back up document or place it on file with an attorney, etc.

Sure.

Is the document enforceable legally if signed by both parties?

The best that anybody on an internet forum can say is, "Maybe."

Whats to prevent the brother for saying that he paid that money back?

Prevent him from saying? Nothing. In which case, this squabble will make several attorneys very happy.

 

[Utahman]

Thanks again. One last question. Part of the estate is "inside" a trust. According to the BIL in question, the estate attorney has suggested including the family home in the trust at this point which will then avoid probate upon the death of the reamaing spouse. Will this adversely effect the ability to execute on the signed document for repayment of the loan or for it to be repaid out of his inheritance i.e. not oversight by the probate court?