What Happens When An Estate Is Working With Borrowed Money?
Probate litigation can sometimes arise out of debts that were owed to the deceased person at the time of their death. For instance, if the deceased had loaned a neighbor some money that the neighbor had not fully repaid at the time of death, the debt would be owed to the deceased’s estate. Likewise, if the deceased had loaned money to a friend’s business who needed some money during a tough time, the loan would be due to the deceased’s estate after his death.
When an estate is owed money, the executor of the estate has a duty to collect those debts. If the person owing money to the estate does not pay those debts promptly, then the executor may have to sue to recover the debt. In most cases, those lawsuits are brought within the context of the estate proceeding, and the probate litigation attorneys are generally the attorneys who handle those lawsuits.