Do I need a lawyer to collect Mom's $45,000?

[mlignabou]

In late spring of 2005, my Sister-in-law frantically approached me; begging for help. She & my brother were unable to catch up on mortgage payments and the bank was going to take their home. They explained that they were expecting to receive money from a settlement ("Workman's Comp" and something else) for an injury that my brother had sustained on his job at a construction site. They said that they expected to receive the settlement in a few months. The money received would be used to repay the loan.

I convinced my then 81 year old mother to lend them $45,000. (This money was just about all of her life's savings.) I have cancelled checks that Mom wrote to my Sister-in-law indicating that the money is a loan.

Now, 4 years later my brother & his wife admit that they have received a small settlement that they used to pay other debts. They do not want to give any details about the settlement, and become agressive when I mention repayment. They say they will pay...In the meantime they have purchased 2 new cars, computers, and seem to be living very well with no intent to reimburse my 85 year old Mom. It seems that they a waiting for her to pass!...

What can I do to set up a repayment schedule immediately and make sure that they stick to it.

Time is passing & Mom's health is fragile. She has the right to decide what she will do with her hard earned money.

Please help! All suggestions most welcome.

 

[BayState]

In late spring of 2005, my Sister-in-law frantically approached me; begging for help. She & my brother were unable to catch up on mortgage payments and the bank was going to take their home. They explained that they were expecting to receive money from a settlement ("Workman's Comp" and something else) for an injury that my brother had sustained on his job at a construction site. They said that they expected to receive the settlement in a few months. The money received would be used to repay the loan.

I convinced my then 81 year old mother to lend them $45,000. (This money was just about all of her life's savings.) I have cancelled checks that Mom wrote to my Sister-in-law indicating that the money is a loan.

Now, 4 years later my brother & his wife admit that they have received a small settlement that they used to pay other debts. They do not want to give any details about the settlement, and become agressive when I mention repayment. They say they will pay...In the meantime they have purchased 2 new cars, computers, and seem to be living very well with no intent to reimburse my 85 year old Mom. It seems that they a waiting for her to pass!...

What can I do to set up a repayment schedule immediately and make sure that they stick to it.

Time is passing & Mom's health is fragile. She has the right to decide what she will do with her hard earned money.

Please help! All suggestions most welcome.

Seems like the money owed to your mother is your debt. Per your post YOU were the one to request the funds from Mom.

If you mis-spoke in your original post please clarify.

 

[dee_dub]

I disagree that it is your debt - interceding on someone's behalf does not make you responsible for their debt. It's pretty clear the money was loanded to the brother and his wife, not to you. I assume there were no issues of your mother's capacity or undue influence that might implicate you at fault.

The debt is not owed to you, it is owed to your mother. You can't do anything to enforce payment without her giving you the power to act for her. If she does, you can demand payment from your brother, and failing that, sue him in court. For that amount, you are over the small claims limit and would have to sue in superior court. Yes, you would likely need a lawyer.

Your brother should know that your mother's death would not erase their debt. They would still owe the money to her estate, and her executor would be entitled to take steps to collect it.

 

[mlignabou]

Seems like the money owed to your mother is your debt. Per your post YOU were the one to request the funds from Mom.

If you mis-spoke in your original post please clarify.

As indicated, funds were received by brother and his wife. They agreed to reimburse once the settlement was paid to them. Although I think I'm responsible to make certain that EVERY EFFORT is made to recover the money loaned; I don't think I'm responsible for my bother's obligation because I tried to help him.

 

[mlignabou]

I disagree that it is your debt - interceding on someone's behalf does not make you responsible for their debt. It's pretty clear the money was loanded to the brother and his wife, not to you. I assume there were no issues of your mother's capacity or undue influence that might implicate you at fault.

The debt is not owed to you, it is owed to your mother. You can't do anything to enforce payment without her giving you the power to act for her. If she does, you can demand payment from your brother, and failing that, sue him in court. For that amount, you are over the small claims limit and would have to sue in superior court. Yes, you would likely need a lawyer.

Your brother should know that your mother's death would not erase their debt. They would still owe the money to her estate, and her executor would be entitled to take steps to collect it.

Thanks Dee_Dub, There are no hidden issues on my end...I'll get moving on the "Power to Act" & write the letter to my brother and his wife.

 

[dee_dub]

"Power to act" is not particularly a legal term. It's not like you need a POA. (Although, at her age, that would probably be a very good idea anyways.) You just need her say-so. If this can't be resolved without a lawsuit, then you would probably need some type of authorization to act as her legal agent.