Legal Question in Wills and Trusts in Illinois

Payoff of home equity loan

Three months before his death, my father took out a home equity loan to pay off some debt. My sister, executor of the estate co-signed the loan. About half of the loan was given to my sister to pay some of her debt as well. She claims this was a gift to her by our father. The agreement was for them to split the monthly payment of the loan. After the sale of my fathers home, the home equity loan was paid out of the proceeds. The balance of the estate, after all debts wrere paid off was split evenly among the four children of the decedent. One of the heirs disputes this and says my sister, (the executor), needs to pay her portion of the home equity loan. The other two heirs have no problem with this distribution and just want to get it over with. There is a hearing scheduled next month. Does she really have a case?


Asked on 4/27/02, 5:47 pm

1 Answer from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: Payoff of home equity loan

Yes. Assuming the sister did in fact agree to pay her share of the loan, the estate has a valid claim against the sister for the amount she should have paid your father but did not do so. If this claim is properly presented and in fact prevails, then the net amount recovered from the sister will be divided equally among the four heirs. If you want to consult with me on this, call me at (630) 221-1755. Larry Stein

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Answered on 4/27/02, 5:54 pm


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