How can I lend a relative money with repayment to be on my death, hopefully out of my will?
How can I lend a relative money with repayment to be on my death, hopefully out of my will?
Here's how you can set up a loan to a relative that has repayment upon your death:
1.Set up a bank account in your name and transfer ownership of the account to the relative.
2. Do not deposit any money into this account. Do not add any interest to the account.
3.Write a letter explaining your intent for the account, and sign it as attesting witnesses (notary public, lawyer, etc.)
4.Put this letter away where it will be safe until you die (e.g., a safety deposit box).
You can't just lend your relative some money and hope they will repay you out of your own estate when you die. If that were the case, your relative could keep the money you lent them and get away with never paying you back. In order to enforce a repayment agreement, you need to write it into a contract. There are many ways to do this; one way is to include the agreement in your will.
If you need a Loan Agreement Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
