Debts after Death

[KCH]

I have been drawing up a promissory note and deed of trust for a debt repaying my mom for the sale of her house. The note will be paid out over a 10 year period. If she dies before the debt is repaid she wants the remaining money to go to her Church so she wants us to include this in the promissory note; however we, my husband and I don't really agree with this. How does that work if we still owe her money if she passes away?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by KCH:
I have been drawing up a promissory note and deed of trust for a debt repaying my mom for the sale of her house. The note will be paid out over a 10 year period. If she dies before the debt is repaid she wants the remaining money to go to her Church so she wants us to include this in the promissory note; however we, my husband and I don't really agree with this. How does that work if we still owe her money if she passes away?<HR></BLOCKQUOTE>


My response:

If you owe her a debt, it doesn't matter what you do or don't agree with. A person can do with their money as they choose. And, if she dies during the life of the promissory note, she has every right to direct your payments to whomever she chooses. All because she may die, doesn't mean the debt dies along with her. All you are entitled to is a receipt for your payments. You might not like it, but that's life in the Big City. If you want the loan, you'll have to do what Mom wants. For example, if she dies during the term of the debt, if she directs her executor to cash your checks, and take the cash to the fire pit, and burn it, she is entitled to do just that, and have her wishes carried out. Each and every month. Again, the executor only owes you a receipt for each payment.

IAAL


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[KCH]

Just wanted to clarify. So would any instructions for any remaining debt after her death go into the promissory note or should I just instruct my Mom to put that request in her will? <BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by I AM ALWAYS LIABLE:

My response:

If you owe her a debt, it doesn't matter what you do or don't agree with. A person can do with their money as they choose. And, if she dies during the life of the promissory note, she has every right to direct your payments to whomever she chooses. All because she may die, doesn't mean the debt dies along with her. All you are entitled to is a receipt for your payments. You might not like it, but that's life in the Big City. If you want the loan, you'll have to do what Mom wants. For example, if she dies during the term of the debt, if she directs her executor to cash your checks, and take the cash to the fire pit, and burn it, she is entitled to do just that, and have her wishes carried out. Each and every month. Again, the executor only owes you a receipt for each payment.

IAAL


<HR></BLOCKQUOTE>

 

[Tracey]

I vote for putting the bequest in her will. That way she can change her mind if the church does something she disagrees with.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

[This message has been edited by Tracey (edited June 22, 2000).]