Bandon, OR asked in Collections and Probate for Oregon

Q: My sister borrowed money years ago from my mom, never paid it back. Mom passed, she's executor. Doesn't she still owe?

She & her husband borrowed the $ for a house from my mom& stepdad. The verbal agreement was to fix it up, since her husband was a general contractor, and sell it, then pay them back. They never fixed it up & sold it, she bought a new house and lives there. My mom got divorced and she said that my stepdad was supposed to get the loan back from my stepsister and she was to get the money back from my sister. My sister told mom that my stepdad said she didn't have to pay it back and he has since passed away. Mom said he had no right to do that. Apparently my sister thought so too, since she has never sold it. Doesn't she still owe the money to my moms estate even though she's the executor?

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1 Lawyer Answer
Gregory L Abbott
Gregory L Abbott
Answered
  • Collections Lawyer
  • Portland, OR
  • Licensed in Oregon

A: Being the executor does not change or affect whether your sister owes the money or not. The real question is whether the "loan" is legally enforceable and how long it has gone on. It sounds as if there is nothing in writing, not even an IOU, and, as noted, how long it has been since she was supposed to repay it and hasn't. Review it all with a local collections attorney if you really want to know. If it does appear to be enforceable, then you need to be sure the probate court is made aware of it and/or that sister simply re-pays the estate by the close of the probate. Good luck.

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