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Post by beaglemom on Jan 7, 2016 1:01:39 GMT
We borrowed some money to buy the property next door from dh's parents 5 years ago. Verbally a year or so later they forgave 1/2 (gave dh's sister that amount of money) of it and then two years ago verbally forgave the rest (after giving that much to his sister again). They are currently in fine health, but in their mid-70's and I am 99% sure that we are the only ones that have a legal document for the loaning of money. My guess is with his sister they just wired her the funds. I could see that sister later on coming back after they die and saying that we should get that much less than them because of the document - even though they were already given that amount plus a bunch more without expectation of re-payment.
Side note - we could write them a check for the amount today no problem, but it seems like his dad wants to keep things "fair" even though dh makes a lot more than my sil. And like I said they are constantly bailing them out with funds that will never be repaid, so we don't feel bad about it. And inlaws don't "need" the money.
So what do we need to get to show prof of payment/forgiveness of the loan?
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Post by freecharlie on Jan 7, 2016 1:32:05 GMT
Get a notarized letter stating that the loan has been forgiven and there is no money owed.
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MDscrapaholic
Drama Llama
Posts: 6,369
Location: Down by the bay....
Jun 25, 2014 20:49:07 GMT
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Post by MDscrapaholic on Jan 7, 2016 1:34:56 GMT
Have them sign it with payment in full written on it. Date it and get it notarized.
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Post by maryland on Jan 7, 2016 1:42:09 GMT
If the parents have a will stating how much will go to your husband and how much to go to his sister, than I don't know how she can say that your husband has to give her some of his share. They don't have to give their children anything, so I don't understand how sister could have any standing. But I may be missing something.
Sounds like your inlaws are very nice people and they want to treat their kids fairly. I hope your sister in law doesn't keep trying to get them to bail her out (if that is what you think she may be doing). It's nice that you all seem to be looking out for your inlaws. It's not your husbands fault that he makes more than his sister. My brother makes a lot more than I do (I am a sahm, so I don't have an income), but our parents give us the same amount of money when they give us money (holidays, birthdays, etc.).
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Post by txdancermom on Jan 7, 2016 2:25:25 GMT
Get them to give you a letter saying the loan has been paid in full, and mark the note paid in full.
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georgiapea
Drama Llama
Posts: 6,846 
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Post by georgiapea on Jan 7, 2016 2:38:24 GMT
Do you have a recorded deed?
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Post by crazy4scraps on Jan 7, 2016 5:12:31 GMT
Absolutely get something signed and notarized stating that the loan has been forgiven. My mom loaned my brother some money when he got divorced that he ended up not able to repay due to the downturn in the economy and getting laid off. Then a few years down the road, he ended up providing her with full time, in-home care for several years that she had no way of knowing would happen (she had Alzheimer's).
Before mom died, all of my siblings that lived in town agreed that the fair thing to do would be to forgive the loan because that was what our mom would have done. After she died, my one sister flip flopped on that and because she was the executor of the estate, she spent tens of thousands of dollars of our mom's money in legal fees and four YEARS in court fighting to make him pay it back. It ended up going to trial, and the judge ruled in favor of my brother which was what the majority of us wanted.
Seriously. Get it in writing because probate brings out the absolute worst in people.
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Post by LavenderLayoutLady on Jan 7, 2016 8:48:39 GMT
Get a notarized letter stating that the loan has been forgiven and there is no money owed. I agree. |
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Post by Scrapbrat on Jan 7, 2016 12:20:25 GMT
You stated that you have a legal document for the loan. The amount of debt that was forgiven constitutes taxable income to you and your DH in the two different years that part of the debt was forgiven. Assuming that you declared that income on your federal tax returns for those years, that would constitute additional evidence that the loan was, in fact, forgiven.
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tduby1
Pearl Clutcher
Posts: 2,979
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Post by tduby1 on Jan 7, 2016 14:29:28 GMT
If the parents have a will stating how much will go to your husband and how much to go to his sister, than I don't know how she can say that your husband has to give her some of his share. They don't have to give their children anything, so I don't understand how sister could have any standing. But I may be missing something. I think the idea is, that unless they have proof the loan was paid or forgiven, then they would still be liable to repay the estate for the loan, thus reducing their amount of the estate. |
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Post by maryland on Jan 7, 2016 14:47:44 GMT
If the parents have a will stating how much will go to your husband and how much to go to his sister, than I don't know how she can say that your husband has to give her some of his share. They don't have to give their children anything, so I don't understand how sister could have any standing. But I may be missing something. I think the idea is, that unless they have proof the loan was paid or forgiven, then they would still be liable to repay the estate for the loan, thus reducing their amount of the estate. That makes sense! But it's sad that the sister would consider doing something like that when the reason the brother got the money is because they gave her the same amount. |
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Deleted
Posts: 0
May 15, 2024 19:39:36 GMT
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Post by Deleted on Jan 7, 2016 14:49:58 GMT
Get a notarized letter stating that the loan has been forgiven and there is no money owed.  having BTDT it makes things crystal (and legally) clear. |
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having BTDT it makes things crystal (and legally) clear.