This is a somewhat complicated situation and I do appreciate your advice:
My brother was the executor of my parents' will. My father died first in 2001, my Mother died a year later and my brother delayed in settling my parents' affairs. We were all close, had our own families and didn't make a big deal of materials things when we were reeling from my parents' deaths. Unfortunately, my brother (the executor) suddenly died 8 months after my mother and I, living the closest to their state, took over the details. Not sure what my brother had done prior to his death, I had to try to start at the beginning and make inquiries.
My parents' total assets upon my Mother's death was under $20,000 and so we did not have to file probate. We did find out, however, from cancelled checks and old bank accounts that my brother when alive borrowed close to $38,000 from my mother. He was in dire financial shape, unknown to us, and died leaving his wife to file bankruptcy for hundreds of thousands of dollars in debt. While alive and in better financial condition, he purchased my parents home for them, provided a car, etc. and took very good care of them. Most in my family has no issues with the "loans" paid to my brother; in fact, we are happy that Mother was able to help him and most likely forgave his debts, given all that he had done for she and Father throughout the years. I do have one sister, however, who is making trouble insisting this money is owed back to my parents' estate. The bank accounts had all been closed by my brother by the time I got involved and I tried to piece things together from old records as best as I could but with limitated information. I had to answer questions about, "What happened to the money?" I'm afraid my sister will go after my sister-in-law to collect loans made to her husband by my mother...the sister-in-law who filed bankruptcy. My brother died in 2003 and these loans were made in 2001 and 2002. We do not want my sister to cause any more problems in an already difficult situation. Does she have a basis for pursuing payment of those personal loans made between my mother and brother--both now deceased? It only says "loan" on the cancelled checks; no formal, documented agreement was made. I believe these checks was written before my Mother became ill and it was a way of assuring her that if she needed the money back, my brother would repay it.
Thanks for letting me know if my sister has a cause of action so we can be ready. I appreciate your help.

