Hello Dave, just read the letter in your column "Don't Play Favorites" about not accepting a loan from dad. I have a similar situation and would like your advice on how to handle.
My mother granted my brother a loan for a business. The business is a trucking company in which he is the sole employee. He has had this loan for several years and some months only pays the interest. He makes his payments through her bank so he can deduct the interest, therefore she pays taxes on the interest. My mom is 82 now and at any time could be in need of that money for her care. I am one of 7 children, and I am my mother's executrix. I fear that if my mother should be in need of the money, it will not be available for her. His truck has aged and he has no assets. He also has a baby on the way. This agreement was a verbal "notepad" agreeement, and my mom isn't even sure of the balance. I think it is unfare to the rest of us, there is no accountability, and he has no established credit. Mom does have some assets, but when mom passes, what happens to that money my brother owes. I don't think he can go to the bank and get a loan for the balance. He seems to feel entitled, because he is the youngest. He is an avid reader of your column and sometimes quotes you…any help or advice you can give will be appreciated. Thanks, Mary