Seriously fed up

Taraskye

An elderly aunt has loaned money to nieces and nephews without obtaining written agreements for the money.
They are paying her pay back monthly - can anyone tell me if this loan is cancelled if she passes away before the money is repaid or as she thinks it comes out of their inheritance.

-taff

Without any proof of loans, such as a written agreement from them to pay it back in whatever installements, the debts will not be coming out of their inheritances, they'll simply stop paying.
No one will be able to force them to pay it back.

She might want to look into either getting loan agreements written or change her will now.

Taraskye

Thankyou for that - I appreciate your contribution you have just confirmed what I thought - unfortunately she thinks she knows best so I am up against it!

jonesMUFCforever

Taraskye wrote: »

Thankyou for that - I appreciate your contribution you have just confirmed what I thought - unfortunately she thinks she knows best so I am up against it!

Can I ask nicely of course, is it any of your business?
Are you worried ''your share'' of the inheritance is being given away?

If so you cannot do anything about it.

Arleen

-taff wrote: »

Without any proof of loans, such as a written agreement from them to pay it back in whatever installements, the debts will not be coming out of their inheritances, they'll simply stop paying.
No one will be able to force them to pay it back.

She might want to look into either getting loan agreements written or change her will now.

Just Because the contract is verbal does not make it unenforcable, and with death, it will be part of the estate. So whoever will inherit will be able to chase them for the money owed. That includes going to the court to collect it if they stop paying it back, and the fact that they are paying it back is almost always good enough proof.

McKneff

But in that case you have to prove the money they are paying is a debt payment. They could just say they were helping her out by giving her money

sourcrates

Arleen wrote: »

Just Because the contract is verbal does not make it unenforcable, and with death, it will be part of the estate. So whoever will inherit will be able to chase them for the money owed. That includes going to the court to collect it if they stop paying it back, and the fact that they are paying it back is almost always good enough proof.

Without a written agreement then the money was just a gift.

No one will be able to force anyone to repay it.

It is not covered by the consumer credit act, it was a private loan, so would die with her.

gycraig_2

It's not your money until she passes away, I doubt she really cares either way in reality

She can just change her will if she does care

AnotherJoe

Yep, it will only come out of any inheritance if it's written into her will in some detail.

Muscle750

Many years ago my parents lent us some money I informed my sister and my brother and agreed that any monies lent to me outstanding were deducted from the monies left to me in their will. Sadly they both passed away and the bit that ws left was deducted from the monies that were left to me and equally given to my brother and sister along with their monies.

Brock_and_Roll

Whilst I agree with other posters that it is probably none of the OPs business, in theory the executor could enforce the debt - he/she has a legal duty to gather all assets of the estate and this includes money owed through loans.


The executor would have to demonstrate that such a loan existed - this could be possible as presumably bank historic statements would show lump sums going out then regular smaller amounts coming back in. It would be a very brave person to stand in court and potentially perjure themselves by denying the existence of a loan.