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Attorney2020
Attorney2020, Attorney
Category: Estate Law
Satisfied Customers: 2578
Experience:  Estate planning and wealth preservation attorney.
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My brother & business partner borrowed $200,000 from my father

Customer Question

My brother & business partner borrowed $200,000 from my father 10 years ago to purchase a business. They signed a promissory note to my father with 7% interest tacked on. The rest of the money for the business was borrowed from a bank (amount unknown to me). I know the bank will get their money paid back before my father's estate gets its $200,000. Their business does pay an annual interest fee ($14,000) for the $200,000 at this time. Although my parents have always been fair to us; they lied to my sister & I & said that my brother had only borrowed $50,000 & the business paid it back within the first year. My brother has finally admitted & shown the paperwork transaction since my father died last month. He says the $200,000 will be paid back; lol...but in whose lifetime? He and his business partners' families have lived beautiful lives from this loan that helped to purchase this business. My sister & I are teachers & I have 4 sons. I need to know if my brother's business debt, even though it is recognized by a bank...Does it get mentioned in my dad's estate? How do I protect myself (& my heirs) to ensure that we are treated fairly in the monies of dad's estate? Charlotte in Louisiana
Submitted: 1 year ago.
Category: Estate Law
Expert:  Attorney2020 replied 1 year ago.
Did you father have a will or trust?
Customer: replied 1 year ago.
Yes, he does have a will. But when the attorney of the will met with us; it was not formally read. He had dad's estate presented on a board. I did not see the loan on the board. I called the attorney later that evening; and he said he realized later that he had forgot to put it on the board. The will (1999) was written five years before this loan (approx. 2004--unsure because it was kept from my sister and I); so it is not mentioned. (This attorney did the paperwork for my brother's business). My brother called me later & was insulted that I wanted the loan added. The attorney told me that it was an asset & might have to be placed in a trust or ???. My brother can sway my mother on decisions, and although we all get along--I am watching out for my own interests. Another matter that was on the board that a financial advisor had said would not be on the board was an I.R.A. that my sister was sole beneficiary of--this was done a year after dad wrote his will-- year 2000. No one understands if this was intended for my mother or not. My brother told me that he talked to the attorney & new financial advisor (family friend), in advance--so I feel like that it why it was presented; strange that his debt was not. I have not told my sister that my brother spoke in advance to both men--but I need legal advice on this loan & if there are any questions that I need answered at this meeting on Friday. Thank you.
Customer: replied 1 year ago.
My brother, who is helping my mother out with the details--but is not any more knowledgeable in this area than we are-- tells my sister that it was part of the estate & is pushing for her to sign it over to my mother. She feels like her name was accidentally placed on it instead of moms; but does not want anyone angry with her. She would be very upset if she knew my brother spoke to the attorney (who told us in advance that he was only representing what was best for my mother).
Expert:  Attorney2020 replied 1 year ago.
The loan is an asset to your dad's estate and whomever the executor of the will is has the power to recover such debt on behalf of the estate or transfer the asset to the beneficiaries in which they can pursue the debt. Bot***** *****ne is the loan is an assets subject to enforcement by the beneficiaries of the estate. I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. Thank you.
Expert:  Attorney2020 replied 1 year ago.
I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. Thank you.
Thank you in advance for your cooperation.

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