Should an executor collect unpaid loans made by the deceased?

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Should an executor collect unpaid loans made by the deceased?

The deceased made a loan to one of her children who is an heir. The child signed a promisory note but never paid any of the loan back. How should that be handled by the executor?

Asked on February 17, 2018 under Estate Planning, Illinois

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Not only should the executor due this; it is legally obligated to do so. Their duty is to protect estate assets, which includes collecting any monies owed to it. If needed, the executor can just offset the loan amount owed against the child's inheritance.

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

I am so sorry for your loss.  It should be handled delicately.  If there is an outsitanding promisory note then the Executor has the legal obligation to collect the debt owed to the estate.  This can be done as well by setting off the debt against inheritance.  Please seek legal help to do this.  Good luck.


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