Legal Question in Wills and Trusts in California

Re: estate problems

I'm not sure I understand, as executors don't begin their duties until someone has died. However, this doesn't sound kosher, if the owner is incapacitated and can't consent to the loan, the "executor" can't normally use the incapacitated person's assets for the "executor"'s personal benefit. This may constitute financial elder abuse, or at the least, may be a breach of fiduciary duty.

Some power of attorney and trust documents allow the fiduciary/trustee/agent to conduct business with themselves, but only if the incapacitated person is protected in the transaction. In this instance, it would mean getting an adequate security interest in the "executor"'s house, and making sure the "executor" pays all costs associated with the loan out of his/her own pocket.

The better way, of course, is for the person to get his/her own loan. At the very least, make sure the incapacitated person is protected if the loan goes into default, which seems likely.