What is the name of your state? Virginia
My 81 year old father with aggressive prostate cancer was just approved for a loan with Capital One for $30,000.00 for five years. He lives with my brother and has no assests such as a home or land, just great credit. He got the loan and gave my brother and sister-in-law the money to do improvements on their businesses (a licensed daycare with the business license in her name and his body shop which is next door) and with the balance she paid off credit card bills. The agreement was for her to make the monthly payment to him and he inturn would pay Cap One. There was no legal document drawn up to protect him. His plan (so he claims) was to get the check and put it in his account and keep track of the money. When the check came in the mail, he was in the hospital with pneumonia. They brought the check to him and had him sign it. When my sister and I found out (3 months later), we had him meet with his lawyer and have a promissory note drawn up for my sister-in-law to sign. My brother claims he had nothing to do with the loan and won't sign anything (all personal assests they have are in his name). Meanwhile, my brother has told my sister-in-law she shouldn't sign it.
My sister and I now realize they never had any intent of paying off this loan, only make payments until my father passes and then let it roll into the estate. My father has very little, the most would be some life insurance. If the life insurance is in someones name does it automatically roll into the estate to cover any unpaid liabilities or does it go to that person? What if the insurance has all four children listed? Also, I can't believe Capital One made this loan. Is it common practice for a company to make a loan like this, hoping to collect on a persons estate?
Thanks,
Karen
My 81 year old father with aggressive prostate cancer was just approved for a loan with Capital One for $30,000.00 for five years. He lives with my brother and has no assests such as a home or land, just great credit. He got the loan and gave my brother and sister-in-law the money to do improvements on their businesses (a licensed daycare with the business license in her name and his body shop which is next door) and with the balance she paid off credit card bills. The agreement was for her to make the monthly payment to him and he inturn would pay Cap One. There was no legal document drawn up to protect him. His plan (so he claims) was to get the check and put it in his account and keep track of the money. When the check came in the mail, he was in the hospital with pneumonia. They brought the check to him and had him sign it. When my sister and I found out (3 months later), we had him meet with his lawyer and have a promissory note drawn up for my sister-in-law to sign. My brother claims he had nothing to do with the loan and won't sign anything (all personal assests they have are in his name). Meanwhile, my brother has told my sister-in-law she shouldn't sign it.
My sister and I now realize they never had any intent of paying off this loan, only make payments until my father passes and then let it roll into the estate. My father has very little, the most would be some life insurance. If the life insurance is in someones name does it automatically roll into the estate to cover any unpaid liabilities or does it go to that person? What if the insurance has all four children listed? Also, I can't believe Capital One made this loan. Is it common practice for a company to make a loan like this, hoping to collect on a persons estate?
Thanks,
Karen