Can a good friend of mine, who is in a nursing home, loan me money to purchase a house?
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Can a good friend of mine, who is in a nursing home, loan me money to purchase a house?
A good friend of mine is in a nursing home here in Ohio. He is private pay ($6,000) a month with a liquid assets being $500,000. He wants to loan me money ($150,000) to purchase a home. There will be a contract with terms of repayment. Is he able to do so?
Asked on April 11, 2012 under Estate Planning, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not your good friend can lend you the $150,000 that you are writing about from a legal perspective is whether or not he is legally competent to do so. Before he loans you the money, I suggest that you consult with a close family member of his about the proposal and if the family member approves such (there may be a power of attorney in place), have a lawyer draft up the promissory note and the trust deed to be signed by the lender, yourself, and the family member assuming the lender is legally competent to make a loan. For that, his treating doctor's opinion as to competency should be given in writing.
The last thing you want to be involved with is a claim that you engaged in elder abuse by taking advantage of the friend who is in the Ohio nursing home.
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