Chicago, IL asked in Contracts, Estate Planning and Probate for Illinois

Q: I have a loan, the loaner passed away. Beneficiary is handing his estate and now want the checks made out to them.

I have a loan contract that the loaner passed away a few months ago. The person handling the estate just informed me that they are having issues cashing my checks that are made out to the deceased name. Now they want me to write the checks in their name going forward. They did not open a bank account for the estate and have been cashing the checks in their personal account. We first agreed I would keep paying the checks made out to the deceased persons name. But now, they said they're having issues with their bank. How should I make out the checks going forward? I was told I could still write his name along with the beneficiary's name on the check. Example "John Doe - Mike Doe Beneficiary of John Joe"??

1 Lawyer Answer
Nina Whitehurst
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  • Estate Planning Lawyer
  • Crossville, TN

A: It is very perilous for you to do what they are asking! What if they are lying about who the proper heir(s) is/are? You could give them a lot of money and then when the proper heirs come along you have to pay the real heirs all over again. Don't do it!

Keep making the checks payable to the name of the lender or make them payable to "Estate of [name of lender]".

They will have to open a probate case to get this loan receivable transferred/assigned by court order to the heir(s). When you have that court order in hand, take it to an attorney to make sue it is proper, and then start making checks payable as provided in the order and as instructed by your attorney,

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