Money owed to the decreased

Kayalana99

Just a quick explanation, say person A lent 10k to person B. Person A passes away but person B has used that money for an investment or mortgage, what position would that put person B in, on how he had to repay the money?

Obviously the money has to be paid, but what would happen if the money wasn't readily available? Would you be able to sort a payment plan etc or if you had a home, would it be a case of a forced sale to pay the sum back?

Hope that makes sense.

Mee

Kayalana99 wrote: »

Just a quick explanation, say person A lent 10k to person B. Person A passes away but person B has used that money for an investment or mortgage, what position would that put person B in, on how he had to repay the money?

Obviously the money has to be paid, but what would happen if the money wasn't readily available? Would you be able to sort a payment plan etc or if you had a home, would it be a case of a forced sale to pay the sum back?

Hope that makes sense.

Not sure I understand, but have yout read this?

DO YOU HAVE TO REPAY A LOAN FROM A RELATIVE, WHEN THEY DIE?

Yorkshireman99

Kayalana99 wrote: »

Just a quick explanation, say person A lent 10k to person B. Person A passes away but person B has used that money for an investment or mortgage, what position would that put person B in, on how he had to repay the money?

Obviously the money has to be paid, but what would happen if the money wasn't readily available? Would you be able to sort a payment plan etc or if you had a home, would it be a case of a forced sale to pay the sum back?

Hope that makes sense.

It is simply a debt due to the estate. Was it formally arranged I.e. is there any paperwork showing when it is repayable? It is a tricky situation for the excecutor and the debtor. Ultimately the executor is obliged to try any means to recover the money by sueing if need be though thatbwould be a las resort. If the debt is not paid within a year, after giving the debtor reasonable notice, that might be the only option.

Kayalana99

Yorkshireman99 wrote: »

It is simply a debt due to the estate. Was it formally arranged I.e. is there any paperwork showing when it is repayable? It is a tricky situation for the excecutor and the debtor. Ultimately the executor is obliged to try any means to recover the money by sueing if need be though thatbwould be a las resort. If the debt is not paid within a year, after giving the debtor reasonable notice, that might be the only option.

I guess it's not a straight forward answer but there would be no doubt the money would be owed, my only concern is the time frame really or if they can force the sale of a first home.

If it did end up in court, would that result in a payment plan or could they force a sale of the home in that case? It would not be down to anyone trying to avoid paying, just a matter of wanting more time to do so.

Yorkshireman99

Kayalana99 wrote: »

I guess it's not a straight forward answer but there would be no doubt the money would be owed, my only concern is the time frame really or if they can force the sale of a first home.

If it did end up in court, would that result in a payment plan or could they force a sale of the home in that case? It would not be down to anyone trying to avoid paying, just a matter of wanting more time to do so.

Impossible to say how the court would view it. Neverthless as executor you are obliged to act. Not a nice situation but there it is.