Must I repay a loan of $1500 to my dad’s estate if there is no signed loan agreement?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Must I repay a loan of $1500 to my dad’s estate if there is no signed loan agreement?
At one point, I told my 3 sisters that I would pay them each $500 for the $1500 that I had borrowed from our late father. I have since changed my mind and have nothing to do with 1 of my sisters; the other 2 don’t care about this issue. Am I legally obligated to repay my dad’s estate for an informal loan?
Asked on November 5, 2010 under Bankruptcy Law, Minnesota
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I am sorry for your loss. Unless the money was a gift then you will always have the obligation to pay back a loan. Whether or not you do is dependent upon you and your family and how they want to deal with things. It is a verbal loan (contract) as you have stated. So if a person - the executoror personal representative of the estate has the right to do this - wanted to push the issue they would have to prove the elements of a contract in order to be able to collect. You have already admitted to the loan. Here is my concern. The executor - or personal representative - has an obligation under the law to collect all debts owed to the estate. You have not stated who that is here but if it is one of your sisters then she has the obligation to do so, whether or not you think you have the obligation to pay.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.