Legal Question in Credit and Debt Law in Pennsylvania
The response from the question & answer below. There is proof of the loans made in 1993. Two loans two signed, one was notarized the other was not both were never recorded. No claims were filed before the estate was sold July, 2014. I was verbally informed as executor shortly after death (2010) of borrower. There were some payments made between 1996 & 1999 with a supposed balance due. Now family member is trying to collect on his debt.. He was not mentioned in the will and no one knows if the loan was paid in full� The funds have not been dispersed pending any further legal action from lender�
Question?
As an executor for an estate, once funds are dispersed and no liens were against the estate but a family member says there was a personal loan made to the deceased and is claiming that the loan was not paid in full and waited until the family member was deceased to make his claim. Can they make a legal claim against the executor?
Answer
I don't know as you provide no information. The relative lender says a personal loan was made. Well, is there some documentary proof of that? Your post does not indicate. Was a timely claim filed? If not, then the claim can be denied on this basis alone. If a timely claim was filed, the executor is free to accept, reject or compromise the claim. Assuming that there is documentary proof of the loan (a cancelled check with "loan" written in the memo line or a promissory note) then you can pay if there are assets.
1 Answer from Attorneys
It does not matter when the loans were made - it matters when the loans were last paid on. The statute of limitations in most cases runs from the date of last payment. If there is proof for at least the one loan, is it a promissory note? Was the loan payable on demand or installments?
Verbally informing you 4 years ago doesn't cut it. A claim has to be filed. If no claim is filed then the estate administration continues. But why is the estate still open after 4 years? Most estates are wrapped up in 1-2 years barring any complications. If no claim was filed then the final accounting should be submitted and releases and receipts presented for final confirmation of the account. Upon confirmation, the estate assets should be distributed and the estate closed.
Even if a "verbal" claim was made, the claim should have been denied by you on statute of limitation grounds.
Your post makes no sense - it says an estate was sold . Not possible. An estate is comprised of everything the deceased owned at deal - real property and everything else (personal property - furnitiure, clothes, jewlery, etc.) and money (stocks, bonds, etc.). How is it possible to sell an estate? You can sell things in the estate but not an estate.
Since you have documentation and since your post is unclear, I suggest that you sit down and pay for a consult with a probate attorney who practices in the county where an estate is pending. Pay the attorney to review the estate file and the documentation there is and see what can be done about wrapping up the estate. Because no claim was timely filed, its going to be barred now and the relative who made the loan can consult his own attorney and do whatever he wants. If he is foolish enough to sue, he is not going to recover very much.
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