My Father borrowed several thousand dollars from his friend 10 years ago. I (his daughter) signed a promissary note that I would pay back the debt out of his life insurance policy, wherein I was beneficiary. Father removed me as beneficiary from life insurance policy one month prior to his passing. Brother now collects full policy.
Personal Injury Lawyer
There are too many factors that could affect this issue. There is no yes or no answer based on your post.
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It will boil down to how the note was drafted. That is, was the ins policy a condition that had to occur in order for the debt to mature? Or is it incidental to your obligation, meaning merely noting where the money will come from at a later date is not relevant to whether you still owe it.
There are far too many unknowns here as well. For example, is the claim now barred by the statute of limitations in any event?
I suggest that you reach out to a lawyer in private and perhaps have her review the note along with all the facts and circumstances so you have a very clear understanding of your obligations here.
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed with the law firm of Natoli-Lapin, LLC on the basis of this posting.
Corporate / Incorporation Lawyer
I agree with the previous answers. It really all depends on how the promissory note was written. If the note was written so that the payment was only going to be made if you received the life insurance policy than you are most likely no longer liable. If there are no conditions on the promissory note most likely you will be liable.
Steven A. Jayson, Esq. The Jayson Law Group LLC. www.jaysonlawgroup.com Office 908-258-0621 DISCLAIMER: THE ABOVE INFORMATION IS NOT LEGAL ADVICE. THIS IS GENERAL INFORMATION AND LAWS VARY FROM STATE TO STATE. PLEASE CHECK WITH A LOCAL ATTORNEY OR CONTACT THE IRS OR STATE TAXING AUTHORITY WITH ANY QUESTIONS.