Q: How can my friend be protected for a giving me a short term loan in the event of my demise?
I would use the funds to buy real estate and pay her back with proceeds from the sale of my coop. Her only concern is if something happens to me before I sell my apartment and have the funds to pay her back.
A: You can grant your the person loaning money a security interest in the real property. This gives the creditor a lien in the property and priority against unsecured creditors or secured creditors who come later in time. You would want to consult an attorney to have the correct forms prepared and filed.
A: If you have assets or property that could serve as collateral, that could be something to consider, if they are in proportion to the loan amount. It would be advisable to consult with an attorney on this transaction. Good luck
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