Answer 1.He has a moral right to her estate and you are morally obliged to pay it Answer 2. Answer 1 is correct as far as it goes, but this is not only a moral issue, it is also a simple legal issue. You owe this money to her estate. Your aunt's executor can collect it, and can sue you for it provided that he can prove that the loan was made and you can't prove the loan has been repaid. The executor must then pay it over to the beneficiary under her will. If there is no will, her husband is the beneficiary.
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