Ask Kim: Handling A Loved One’s Estate After Their Passing

Posted on September 2, 2025

Dear Kim, 

My father recently passed away, and I am the executor of his will.  He left a note for me to open after his death, and that note shared that he had loaned $20,000 to a friend a year ago.  He asked me to collect that money now since he considered it part of the “inheritance” for my sister and me. I’m a bit confused about what to do next and how this money can be part of his estate.  Can you advise on the next steps?

Sincerely, 

Executor Dilemma

Dear Executor Dilemma,

I’m sorry to hear about the loss of your father. In addition to his will, did your father also include a copy of any documentation relating to the loan? Did the friend sign anything stating what the payback arrangements were? The friend could simply deny the existence of any debt without that documentation.

I would begin by looking for that documentation, and if you can’t locate it, contact the friend and ask to meet. Show them the letter your father left and ask about it. The friend may provide additional details regarding the loan, and you can proceed from there.

Kim

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