My parents passed away and left control of the house to my sister. My father stated in the will that I and my kids 17 and 20 stay living there. My sister took out a loan on the house to remodel it and now wants me to pay her back. What I want to know is, since she is the trustee and took the loan out, who technically has to pay the loan back? My sister because she is the trustee, or me because I live in the house?
2006-06-22 09:22:54 · 11 answers · asked by L.A. Woman 3 in Politics & Government ➔ Law & Ethics
your sister... how could you be responsible for something you were only a passive part of? as long as you never signed on the dotted line for the loan, it's all her responsibility.
2006-06-22 09:27:28 · answer #1 · answered by Dan H 2 · 1⤊ 0⤋
Technically, she does; however, this is an opportunity in disguise with also the potential for disaster. I would try to work something out as the cost of offending your sister is probably more than the cost of the remodel.
If you are financially able, I would graciously thank your sister for all she has done to make the house a lovely home for you and your kids. Your children will learn the lesson of taking responsibility for something in which you are benefiting even in light of the fact, you may not have done it.
Your children will also learn practically how to give and love in the family. You can't lose if you take this way. Your decision could bring a blessing to you for years to come. I would start paying off the loan.
2006-06-22 16:42:05 · answer #2 · answered by lindakflowers 6 · 0⤊ 0⤋
Obviously, your sister should have discussed this with you before taking out a loan - but you are in a predicament. She took out the loan and she signed the paperwork for the loan - so the debt is actually hers. However, she probably used the house for collateral - which means - if she defaults on the loan, the bank could get the house. Since remodeling enhanced your living surroundings, you should try to work out a compromise where you both don't lose everything.
2006-06-22 16:29:38 · answer #3 · answered by Coach D. 4 · 0⤊ 0⤋
You owe nothing unless you have a rent agreement (in writing)! Your sister is the trustee, she will be responsible for any cost or taxes on the home. Now for the loan. If your name is on the loan as a co-sign then yes you are responsible. If she took out the loan on her own then she is responsible for the loan. I would really suggest having a talk with an attorney as laws are different from state to state. Good Luck!
2006-06-22 16:35:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'm assuming that when your sister took the loan out the bank had her sign for it. Unless your name is on that document as a cosigner, you are not libal. She's just being unfair to you with the whole situation. Maybe she's really hurt deep down and needs to speak to someone about it. She might also be jealious of you cause you get to live in the house that she wants. Either way, don't sweat it. You are safe from paying back the loan. But please see to it that sis gets some consuling. Sorry for your loss. Good luck.
2006-06-22 16:31:35 · answer #5 · answered by melbel 3 · 0⤊ 0⤋
If she took out the loan, it's all on her. It might be nice to give her some cash as you will be living there and reap the benefits of teh remodel, but technically, it's her loan and her responsibility to the bank.
2006-06-22 16:27:14 · answer #6 · answered by tharrison13 2 · 0⤊ 0⤋
She took the loan out, did she ask you or talked to you about it? If not, she is the one to pay it back. If she did talk to you about it you could pay her back.. Did she do it for her or you and your children???? in the end, if you both decide to sell the place she could get her money back, for the investment she put into the house.
2006-06-22 16:46:18 · answer #7 · answered by Mrs C. 1 · 0⤊ 0⤋
Your sister is liable. She took out the loan. When you move out she gets to sell it and reap the additional value the remodel will bring. She will benefit then.
2006-06-22 16:28:43 · answer #8 · answered by Thrasher 5 · 0⤊ 0⤋
Technically it's her loan. But if you went to court about it you'd prolly end up paying half.
2006-06-22 16:50:42 · answer #9 · answered by catmanbigwil 4 · 0⤊ 0⤋
I am not a lawyer, but I would say, she would. Unless you signed a contract stating that you would pay or repay for repairs, ect. .. to the home. :)
2006-06-22 16:28:42 · answer #10 · answered by BlueAngel 5 · 0⤊ 0⤋