Legal Question in Wills and Trusts in New York
Interstate Promisory Note from family Member Goes Unpaid
A cousin residing in Florida borrowed $20,000 from my mother (in Florida) five years ago. Subsequently, she transferred all of her money to a family trust of which I am a co-trustee. The trustees live in New York City. The cousin agreed 2 years ago to re-write the note, naming the family trust as the entity which would receive payment. He has failed to pay the second note in a timely fashion. It was due 2 years ago. He has also stopped paying the monthly $100 which he agreed to pay as "good faith." The trustees did not secure the loan. He currently owes the original amount plus an amount of unpaid interest. Can we recover this money for the trust?
1 Answer from Attorneys
Unpaid note - Interstate
The Trustees have a valid cause of action to recover the debt on the note. However, whether you can actually recover the money and interest depends in part on your cousin's ability to pay and whether or not he or she has assets in New York.
If the assets are only in Florida and the Loan was made in Florida, you may be better off sueing in that State.
Florida is a debtor friendly state. It exempts property from collection which States like New York consider fair game.
Keven Danow
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