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  1. #1
    Join Date
    Jul 2009

    Unhappy Fraud Against Elderly Parents

    My brother and his wife borrowed approximately $35,000 from my parents. They signed a contract agreeing to make monthly payments, which they are not keeping up. Recently, my parents informed me of this, and said that during the last visit with their son, he mentioned that his wife is out of control with spending, so they are unable to make payments. They enjoy many trips and many expensive outings, but they recently lost the home they were in and needed to move...the need to borrow the money.

    My mother informed me that there is a stipulation in the contract that if/when my parents die, my brother and his wife will not be held accountable to repay the loan. I'd like to add...when my sister-in-law's father died years ago, she "mourned" his passing by going on a 2-week cruise and has enjoyed several since, using the money left to her by her father. She spends like there's no tomorrow, and I believe with that stipulation in the contract, they have no intention of repaying the loan. My parents are 86 and 83, their health is failing.

    My question is this: Have they voided the contract and/or committed fraud by not keeping up payments and showing no intention of repayment? It seems to me they can't have it both ways. My parents' wills state that their assets be divided between their three children, but my mother is worried that they will not repay the loan AND their son (and his wife) will receive his share of their assets, which aren't much to begin with. My parents are not wealthy, and this loan certainly decreased their savings.

    Any advice will be very much appreciated.

  2. #2
    Join Date
    Jan 2008

    Question Re: California - Fraud Against Elderly Parents

    THere is nothing in your post to indicate your parents are being taken advantage of. IF they choose to enforce the terms of the loan with your brother they appear (from what you've written) to be capable of doing so. And there is nothing wrong with their choice of forgiving your brother's debt upon their death. This is not a highly unusual will stipulation. Just because you don't agree with their choices does not mean your sibling is committing fraud.

    oops - just re-read the last paragraph of your post. sorry. If your mother is worried then do you know why she doesn't simply remove that stipulation from the will or enforce the contract? Could it be that your dad likes the way things are?

    oh Good Lord - now I see that the stipulation of not owing the debt is part of the loan agreement and NOT part of their will. I'm so sorry. I need to find my bifocals! Who signed the loan agreement? Mom and Dad or just one of them? Can you let us know exactly how the agreeement was written and who wrote it out - parents or brother?

  3. #3
    Join Date
    Jul 2009

    Default Re: California - Fraud Against Elderly Parents

    Thank you for your response, 525601. What I do know is that my brother's wife wrote up the contract. What I don't know is if both Mom and Dad signed. I will get that info today or tomorrow.

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