Owing a deceased money

[Jane Schulz]

Hi there need some advise here please.
2 years ago My mom lived in sheltered accommodation and a very good friend and neighbor of hers lent us £15k, wanting no interest and just to pay back when we were in a position to do so to buy our house, his only stipulation was that the money go to his very close friend and her son whom he adored, she was once the warden in the sheltered housing which he knew was tricky so he was absolutely adamant that nobody else was to know about it and especially his family.
He unfortunately died very suddenly 6 months ago, his sister was executor of his estate which had very little in it. It has now come to light and his friend is going to lose her job, his sister has been in touch with me to say that the money has to be paid back into the estate, is this correct? If so can she demand it back immediately?
Thanks Jane

[Kati]

Re: Owing a deceased money

tagging [MENTION=39710]des8[/MENTION] [MENTION=141]enaid[/MENTION] ??

[des8]

Re: Owing a deceased money

Hi and welcome.

It seems to me that the loan to you was in fact a gift to his friend.
The only term of the loan was it should at some undetermined time in the future be paid to his friend.
The estate imo has no claim to it (and even if it did the repayment period could not be changed so immediate repayment is out!)

If the estate had exceded £325,000 however there would have been inheritance tax to pay, but not in this case

Was the lender also a resident of the sheltered accomodation?
Did the warden actually lose her position because of this gift?

If so the gift still stands.
It will not be illegal for him to make the gift, altho' it might breach her contract to accept it.
However as it has not yet been repaid, why did she lose her position (if she has).
And if she no longer has the job, why should she not eventually accept the gift?

[charitynjw]

Re: Owing a deceased money

& why should his friend lose her job? (if it is concerning this matter)
She has done nothing wrong, & certainly hasn't gained anything other than a vague promise, which is outside of her control.

[Jane Schulz]

Re: Owing a deceased money

Hi and welcome.

It seems to me that the loan to you was in fact a gift to his friend.
The only term of the loan was it should at some undetermined time in the future be paid to his friend.
The estate imo has no claim to it (and even if it did the repayment period could not be changed so immediate repayment is out!)

If the estate had exceded £325,000 however there would have been inheritance tax to pay, but not in this case

Was the lender also a resident of the sheltered accomodation?
Did the warden actually lose her position because of this gift?

If so the gift still stands.
It will not be illegal for him to make the gift, altho' it might breach her contract to accept it.
However as it has not yet been repaid, why did she lose her position (if she has).
And if she no longer has the job, why should she not eventually accept the gift?

Ok thanks very much for the info regarding the the estate not having claim to it this really helps as we would like to honour his wishes, yes he was a resident at the sheltered accommodation, the warden is going to inform her employers tomorrow about the situation, but she seems to think as she didnt follow protocol she will be fired.

[des8]

Re: Owing a deceased money

Not being in possession of all the facts it is difficult to comment on the wardens position.
However it does seem unfair that she should lose her job because a resident has expressed a desire to give her (&/or her son) a gift which has not materialised.
If for some unfortunate reason you never manage to repay the loan, , or if she should unfortunately die prematurely she will never receive the gift.

[Jane Schulz]

Re: Owing a deceased money

Not being in possession of all the facts it is difficult to comment on the wardens position.
However it does seem unfair that she should lose her job because a resident has expressed a desire to give her (&/or her son) a gift which has not materialised.
If for some unfortunate reason you never manage to repay the loan, , or if she should unfortunately die prematurely she will never receive the gift.

Hi there

I spoke to the warden and she had been to her HR department and told them about the gift and as you said as she has not benefited she should be ok and we will make arrangements to pay her somehow.

Thanks