Promissory Note

[imgracie]

What is the name of your state? Michigan

Deceased parent had loaned money to a daughter. Promissory Note was signed that stated - Due upon demand. Any balance to be paid from that siblings share of estate. Estate lawyer is requesting either - payment in full, take out new note (w/interest) or sell 999 of 1,000 shares in family LLC (which contains all of the estate's assets, including home and liquid assets). Home was appraised at 350,000 - cash assets are over 100,000. 7 siblings are now "members" of this LLC. The home is not being sold - it is a "resort" type home to be used by all members.

The attorney stated that the managers of LLC would accept 999 of the siblings 1,000 shares in exchange for the $15,000 owed.

Doesn't a full accounting of the estate have to be presented to show what 1/7 of it would equal? Can they just "pick the amount of $15,000" to be her share of the estate? Can they withhold her certificate of ownership in the LLC?

 

[Dandy Don]

Of course a full accounting should be presented to show what the 1/7th would equal, or you can calculate it yourself (see below).

Whatever you do, please don't be foolish enough to sell the 99 shares--that would give the managers 99% of the $350K if the home was to be sold in the future. Does the LLC papers or the will ever address the issue of what happens if the home is eventually sold and who would get that money?

They can not legally withhold her certificate of ownership in the LLC.

Divide the cash assets by 7 and you will see how much sibling is entitled to, and it's a little bit less than the $15,000, so sibling should take out a new note or wait until she receives her check and then turn it over as payment of the largest share of this debt and then come up with the rest on her own.

DANDY DON IN OKLAHOMA ([email protected])