Am I legally responsible for a personal loan made with a friend that is now deceased?

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Am I legally responsible for a personal loan made with a friend that is now deceased?

I took out a personal loan through a family friend. The loan is tied to her CD and I have been making payments on time every month directly to the bank. Our friend has recently passed away and the children are looking to liquidate her estate. I do not have the resources to get a loan to cover the remaining funds put into my name to free up her CD. I have offered to pay the children directly monthly instead and they have declined. Other than moral obligation am I legally bound to this loan?

Asked on March 24, 2012 under Estate Planning, Texas

Answers:

Patricia F. Bushman / Bushman & DuBose, LLC

Answered 9 years ago | Contributor

Your friend's estate has a right to collect her debts.  Did you sign a note or was it verbal?  If there is no note, it might be hard for them to collect, although not impossible.  But it will also be difficult for them to change the terms of the loan, which can be proved by how you have been doing it all along.


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