What is the statute of limitations on loans if the borrower already died?

Is there an open probate? Was notice to creditors given? Did she receive notice? Talk to a probate lawyer.

This is a question best addressed to the lawyer who is handling the probate. There are many facts and circumstances that may affect your question. The basic answer is that if Sister doesn't have a properly executed promissory note, then she should not expect to be repaid. However, as I say there are lots of maybes in this situation.

First of all, when a person dies the family has one year from the date of death to open an estate in probate court. It would appear from the information that you provided that it is too late to open such an estate. If there remain questions as to whom is entitled to receive certain assets from the estate the only procedure left is one that is called "Determination of Heirship." With respect to the statute of limitations, it depends on what kind of a debt your father owed to your sister. On contracts for the payment of money these would normally be evidenced by a promissory note to the order of your sister, dated and signed by your father. This type of obligation would have a statute of limitations of 10 years. As to the calculation of the 10 year period a lot may have to do with what happened from the time the note was signed until the time of your father's death. If no such evidence of indebtedness exists the statute of limitations would, in all probability, be five years. Based on the information that you provided it would seem that there was no evidence of this debt. If your sister hopes to recover this she would have to hire counsel and initiate an action to determine heirship. As I mentioned she would have to retain counsel and then provide evidence to prove her claim. If an issue arises with respect to the authenticity of the checks she has produced she may have to hire an expert to prove their authenticity. By the same token, you may have to hire your own expert to prove that these documents are not authentic. My guess would be that this litigation could take a considerable amount of time.

Maybe. The statute of limitation in Idaho is 5 years for contract and if payments were made in 2012 that could theoretically cause the statute to go another 5 years from there. You need to get with the attorney representing the personal representative and go through all of the details with him or her.

Sounds like a lot of different issues. If your father did in fact borrow the money, then it should be paid back. If the money was a gift, then your sister would not be entitled to repayment. A great deal depends on the facts of the situation, which seem unclear, based on your summary.

Generally, a creditor has a specific period of time (often a 60 day window after notice is published of the estate being filed with the probate court) in which to officially notify the estate, the executor, or the probate court of the existance of the debt. Failure to report usually results in the debt being barred permanently and the estate doesn't have to pay it off.

A personal loan has a 6 year statute of limitation from the last payment. She would have to sue/make a formal claim on the estate in probate before then. Now you should ask her for a full accounting of all of the money she "loaned" him including check numbers and dates, etc.See if the uncashed checks show up if so the estate may have a defense against the amounts she claims is due.

Suggest you obtain the services of a probate attorney. Assuming a probate is filed, at some point notice to known creditors needs to be given, and creditors need to file a claim against the estate, for determination of validity of the claim.

If he never cashed the checks, he never received the loan. I would just give her back the checks. But do it formally, through the court, and keep copies of everything.

It appears there was no writing evidencing a loan between your father and your sister other than the checks. Your sister would have to prove that each check was not gratuitous between family members, that each was intended to be a separate loan, and that the funds were received by your father.

Normally a statute of limitations is 3 years for a running account. However, there is an 8-month creditor claim period following someone's death so if she did not file a claim within 8 months of his death with accompanying proof of the debt and you do not believe there is a debt there is no obligation on the estate to pay her.