Legal Question in Wills and Trusts in Illinois
Do Loans End With The Person's Death?
A relative recently died. The executor of the estate found out that some of the money that was to be inherited was loaned to another family member. On the check it was written LOAN. Does that loaned money belong to her estate and can the executor file for that money be repaid, or does the loan end with the person's death. Basically, does the loan remain intact even though the person died?
Thank you.
1 Answer from Attorneys
Re: Do Loans End With The Person's Death?
The loan is an asset of the estate and if it was really a loan must be repaid to the estate in accordance with its terms. The simple notation on the check is only "some evidence" that there was a loan. Is there a promissory note? There may be one amoung the effects of the decedent. If the relative disputes that the funds were a loan then the executor has the burden of proving it was a loan. If the check is the only evidence it might be a difficult job. If the loan is acknowledged then it surely is an asset of the estate.
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