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Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 4028
Experience:  Solicitor
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Can an executor who has leant money to the estate, pending

Resolved Question:

Can an executor who has leant money to the estate, pending the sale of a house, charge interest on the loan?
Submitted: 10 months ago.
Category: Law
Expert:  Jamie-Law replied 10 months ago.

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 10 months 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.
Expert:  Jamie-Law replied 10 months ago.

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 10 months 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?
Expert:  Jamie-Law replied 10 months ago.

Correct.

Does that clarify?

Jamie-Law and 3 other Law Specialists are ready to help you
Customer: replied 10 months ago.
Great- thanks for you help.
Expert:  Jamie-Law replied 10 months ago.

All the best.