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    pamela82104's Avatar
    pamela82104 Posts: 1, Reputation: 1
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    #1

    Aug 12, 2014, 09:59 AM
    Estate loaned money to a family member
    Power of attorney lent money on behalf of estate to family member. Family member not willing to pay back.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Aug 12, 2014, 10:03 AM
    So the estate sues the family member. If the family member is a beneficiary of the estate, the balance can be taken from their share.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #3

    Aug 12, 2014, 10:18 AM
    The holder of a power of attorney would not have had the authority (in behalf of the estate) to loan the money after the decedent's death, so the estate can also sue the holder (i.e. "attorney in fact").
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #4

    Aug 13, 2014, 01:43 PM
    I hope there is a written contract regarding this loan, or suing and winning a judgment will be difficult. Just by coincidence I am involved in a similar situation, where the decedent before passing made a personal loan to a family member who is not a beneficiary of the estate, and now the executor has had to file a law suit to get the money back on behalf of the estate. Other personal loans that had been made to heirs were simply deducted from distributions of assets to those heirs, just as ScottGem suggests.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Aug 13, 2014, 11:01 PM
    Several issues,

    1. Power of attorney ( for the dead person) ended at death, so if that is the POA you are talking about it ended at death, So the POA at that poing would have been acting illegal and may also be liable.

    2. the estate can sue the person for the money.

    3. also, as estate is settled, if money is owed, it would be withheld from his share.
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