Full question:
an accountant takes a personal loan from someone and cases the check into his business account. he pays back 1/3 of the loan and then the creditor dies. The deceased spouse receives payback payments and then the payments cease. How can the widow sue to recover the rest? Does she need to start a trust since she is suing on behalf of the dead spouse? Is it a money judgment thing or do we just file straight out breach of contract civil suit. Are liens avialable?Evidence of the loan is not an issue, he made a recent payment last year, we have many e-mails promising to pay, but now he won't answer calls.
- Category: Wills and Estates
- Subcategory: Probate
- Date:
- State: Pennsylvania
Answer:
When someone dies, any money owed to them becomes part of their estate, which includes everything they own or are owed, minus any debts. The executor (if there’s a will) or administrator (if there’s no will) is responsible for collecting debts owed to the deceased. This process is called probate, where the deceased's assets and debts are made public records.
The widow can file a breach of contract action on behalf of the estate. Local court rules vary, so it's advisable to consult the local clerk of courts regarding the process of opening a separate account for collecting any judgment. Typically, creating a trust is not necessary in this situation.
Relevant Pennsylvania statutes include:
- 42 Pa.C.S.A. § 8302: Causes of action survive the death of a party.
- 20 Pa.C.S.A. § 3373: Actions can be brought by or against the personal representative of the deceased.
- 20 Pa.C.S.A. § 3376: Statute of limitations for debts owed to the estate is extended for one year after death.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
