Legal Question in Wills and Trusts in California

Re: Estate

It depends upon how long you have owed how much money. In the absence of an agreement to the contrary, a case can be made for the idea that a reasonable interest rate can be charged on loans. You should get this negotiated and resolved. It is not enough money to fight over. Then get the estate distributed.

It breaks my heart when I see families get involved unnecessarily in this kind of stuff because of a failure to use basic information and plan for the passing of our parents and ourselves.

Re: Estate

If you did not have an agreement for interest, your brother would only be able to charge you interest from the date your dad died until the loan was paid.

Re: Estate

Mr. Cogan might be correct, but I think there are other ways to look at the situation.

If the money given you by your father was really intended and understood to be an advance [his saying you could pay it back when you could suggests it is not an advance but more an open ended loan], there would be no interest due. You are merely receiving the money earlier than normal. When employers allow their commissioned sales people to take advances on what they are entitled to at the end of the month, interest is not charged. When someone gives you a down payment for real estate they are buying from you, you do not pay they interest. The money you are getting is money that eventually you probably will be entitled to and one does not pay interest on their own money.

Interest normally is only playable if the parties state it is, one can logically assume they intended interest be paid, for a court judgment, or if it is customary in the business the parties are engaged in.

Your brother could logically argue that since you received money at it current value and the credit will be taken with inflated money of a lesser value, you should compensate the estate. Or he could argue that if the money had been left with your father it would have been invested and on his death his estate would have been greater [but half that increase would be going to you]. Is your brother clever enough to come up with "abnormal" arguments such as those? What is his basis of saying you owe interest--that the money was a loan? There are some no interest loans that are made.

The big problem you will have is that as executor your brother will made the initial decision and you will have to object to the probate judge. Did your brother receive any money or something of a monetary value from your father before he died [lived rent free in his home, used his car, ate meals there all the time, father paid for some large consumer item, paid for his college expenses and not yours, etc.]. Something you could use to offset his argument? You may need to invest a few hundred dollars in hiring an attorney to write a sharp letter to him. How much in interest is involved?

Good luck.