How to Make a Promissory Note Addendum to Subordinate the Note
My question involves collection proceedings in the State of: California
My business partner/spouse and I have each individually made several personal loans to our business documented in multiple promissory notes. I am concerned about the future of the business and the health of my husband. He refuses to discuss a will. He has grown children and I am concerned that if something should happen that the business will be unable to repay the full amount of my promissory notes if assets are divided up between family members. He has always said that he would pay me back first before paying himself but this is an oral agreement only. I have asked to be repaid now but he said the funds are not available right now. He has agreed to subordinate his promissory notes to mine in writing. I have been unable to locate an addendum that he can sign and have notarized subordinating his promissory notes to mine so that I will be paid before assets start being divided up amongst his children. Can you help please?
Re: to Make a Promissory Note Addendum to Subordinate the Note
If he dies without a will (intestate) you IMMEDIATELY lock up everything, head to the probate court and get yourself appointed representative of his estate. That puts you in control and the grown children get nothing until all his debts get paid. Whatever is left, if anything, can then be divided.
Under California intestate succession law you inherit ALL of the community property anyway and I'm guessing that the business is community property.
If he owns any separate property (assets in his own name) you get a share of that and the children get the rest.
You really need to talk to an estate planning or probate attorney. Even if your spouse doesn't want to, you need to educate yourself so you know what to do upon his death.