Author Topic: What LC does when lender passed away?  (Read 2184 times)

heikkie

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What LC does when lender passed away?
« on: September 24, 2016, 05:37:08 AM »
Loan id: 53544354
I try to do some searches but cannot find anything


rawraw

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Re: What LC does when lender passed away?
« Reply #1 on: September 24, 2016, 06:50:07 AM »
I think they file with the estate.

Debt Free

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Re: What LC does when lender passed away?
« Reply #2 on: September 24, 2016, 08:46:19 PM »
Majority of the time it is written off.  Hard to collect from a dead person with on insolvent estate.  Chances are if they have a loan out, it means they don't have money.

Larry321

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Re: What LC does when lender passed away?
« Reply #3 on: September 26, 2016, 12:13:23 PM »
The OP asked about when a Lender dies, not when a borrower dies.

I imagine, you should have a will, and in the will indicate that you have this asset, that is loans, and identify beneficiaries of your account.

Once Lending Club has a death certificate for the lender, then the assets are made avaiable to the heir like any other asset such as mutual funds or a bank account.
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Re: What LC does when lender passed away?
« Reply #4 on: September 26, 2016, 01:37:21 PM »
DOH!!!   :-[

... adding to what Larry said, in the absence of designated beneficiaries on the account, then it becomes part of the decedent's estate.  A will or living trust really helps then when the estate goes to  probate.  (Not difficult, but more of a pain.  I am the executor of my father's estate, who recently died.  He had updated his will about six months prior when his second wife died which was a good thing (that he updated the will, not that she died).
« Last Edit: September 26, 2016, 01:49:49 PM by Debt Free »

AnilG

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Re: What LC does when lender passed away?
« Reply #5 on: September 26, 2016, 03:39:51 PM »
But OP posted a Loan ID, the loan that was issued to a borrower who passed away. OP most probably incorrectly mentioned "lender" instead of "borrower".

The OP asked about when a Lender dies, not when a borrower dies.

I imagine, you should have a will, and in the will indicate that you have this asset, that is loans, and identify beneficiaries of your account.

Once Lending Club has a death certificate for the lender, then the assets are made avaiable to the heir like any other asset such as mutual funds or a bank account.
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Re: What LC does when lender passed away?
« Reply #6 on: September 26, 2016, 04:47:36 PM »
So to answer either way....

Borrower dies, responsibility of their estate to pay, but most likely written off.
Lender dies, account goes to beneficiary, otherwise to their estate for probate.

heikkie

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Re: What LC does when lender passed away?
« Reply #7 on: September 29, 2016, 07:27:35 PM »
hello
Thanks for your post
I mean Borrower