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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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Can an executor who has leant money to the estate, pending

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Can an executor who has leant money to the estate, pending the sale of a house, charge interest on the loan?

Hello my name is ***** ***** I will help you with this.

Was it agreed that interest could be charged or would be payable, before the money was lent please?

Customer: replied 1 year ago.
No, it was simply stated that it would save the estate money because a commercial loan would be more expensive. Also, the interest charged was well above what was available commercially to a private investor. I thought it might have been reasonable to charge what he would have lost by making the loan but unreasonable to profit from it.

Then no. Unless it was agreed that there would be interest charged on the loan, then it can not be done post contract.

This is a contract for a loan. All terms must have been agreed in advance.

If it was not discussed or agreed interest could be charged, then it can not.

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
Thank you. The other thing is that the executors made an ex gratia cash payment to a paid carer without asking the beneficiaries. Does the same apply as to the loan?

Correct.

Does that clarify?

Jamie-Law and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Great- thanks for you help.

All the best.