I have loaned my daughter and her husband a considerable amount of money (at no interest) which they are paying back over the next 10 years. We are looking for a way to ensure that I would be 1st in line if they were to die prior to repayment. Is there a simple process (will?) where they could do this?
2 Answers from Attorneys
Hello. An optimal way for a lender / creditor to create terms to safeguard repayment of her/his loan is for the lender to have an attorney create a written loan agreement that addresses the lender's concerns and wishes and goals. Once the loan has been made, the recipient of the money (the debtor) may create terms to safeguard repayment to the lender. The lender and the debtor may together form a new agreement ( a 'stipulation') as well. It is possible to a debt to be 'secured' by property of some sort (real estate, vehicle, other specific personal property, accounts, etc.) Some attorneys are available seven days for emergency legal needs. Many attorneys will confer initially at no charge. Then, if legal work is performed, some attorneys will provide a reduced fee for financial hardship. Some attorneys may also assist you in a limited scope manner to conserve legal costs. All the best.
TRICIA DWYER, ESQ.
Tricia Dwyer, Esq & Associates PLLC
DEBTOR CREDITOR LAW
DEBT REPAYMENT LAW
Pretend you are a bank. Get a written loan agreement and promissory notice. Take security in (aka a lien on) something of value -- a home, cars, cabin, whatever. Have the security interest properly "perfected" by filing notice in the appropriate public office or offices.