Academy Award winner suing father over unpaid loan
Filed under: Borrowing, The Dolans
Time to add yet another name to our Celebrity Money Mistakes gallery!
Academy Award-winning actor Richard Dreyfuss had a Close Encounter of the unpleasant kind this weekend, when he sued his father and uncle over money.
Dreyfuss claims he loaned his family members $870,000 in 1984, but he never got back his money or the interest he says was due.
Dreyfuss learned the hard way that loaning money to family and friends is often a recipe for trouble. Don't make the same mistake.
With times so tough and loans so hard to get as this credit crackdown makes it very difficult to borrow money from traditional sources, more and more people are turning to family and friends for financial help. We KNOW how much you want to open up your wallet and help the people you love, but don't let your heart overrule your head on this one.
If you decide to loan someone close to you money, make sure you do it the right way so you can prevent problems and bad blood later on. (Think Richard Dreyfuss is getting invited to Mom and Dad's for Thanksgiving dinner this year?!)
The number one rule for preventing problems is to write up an enforceable loan note. We've heard so many horror stories about loaning money to family, that we wrote a sample loan note you can use at our website. It has all the key ingredients you need to protect yourself and document the terms of the loan.
A formal loan note gets everything in writing and makes sure everyone involved agrees to the terms of the loan. Plus, it makes sure the IRS doesn't look at the loan as a gift (which has a whole lot of other potentially negative consequences).
Remember, a little common sense now can save lots of heartache with the ones you love later.
Personal Finance experts Ken and Daria Dolan show you hundreds of ways to save money, manage your debt and invest with confidence at Dolans.com.
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Reader Comments (Page 1 of 1)
8-12-2008 @ 8:24PM
Robin Hood said...
Richard must a jerk in real life.
So almost 25 years later he wants to call in a loan from family members? HIs own Father to boot.
Frankly, little DIcky Dreyfuss does not need to be invited over ever again for anything.
What a chump! What a truly sad situation it really is for everybody involved.
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8-12-2008 @ 8:37PM
Just a Thought said...
I've always loved Dreyfuss all the way back to American Graffitti when I was a teenager. My only question is, with all his money, why would he make it a loan to his own dad, unless it was just a ton of money that would effect his financial life today. I would give my dad a million dollars if I had his money. I don't know the circumstances, but I would do anything for my dad. I hope they can reconcile.
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8-12-2008 @ 8:42PM
Patricia said...
Who "loans" their parents money!?!
If my parents needed money...all they would have to do is ask. A loan is a small gesture compared too all the sacrifices my parents made for me growing up!
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8-12-2008 @ 9:05PM
jojostarr said...
I can see suing your uncle over an unpaid loan, but someone like Dreyfuss should not be suing his own dad. Shame on him !
He must be a real horses behind!
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8-12-2008 @ 9:05PM
dant said...
how very lame, i wonder what the amount was. did dick deduct the cost his father incurred raising him?
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8-12-2008 @ 9:12PM
ellen sheehan said...
i can't believe that an adult like Richard Dreyfuss didn't know to make a formal note and have it signed. Also isn't there a time when you can't sue? I guess he doesn't watch Judge Joe Brown
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8-12-2008 @ 9:14PM
Jeff said...
I completely understand Mr. Dreyfuss, & support his discissions..
though it it really nobody's business what he does.
The family trusted him & he should be able to trust the family.
Right? Or am I speaking to Hipocrites?
Take care Richard.
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8-12-2008 @ 9:15PM
Bill said...
I guess you never loaned any of your family money. It is the principle of the act, no matter whom the party is. I sent money home from over seas to be put into a savings account - almost $7,000.00 expecting it to be there for me when I got home. It was not - father and mother used it to redo the house. I had nothing when I returned. This was not even a loan. I learned the hard way to not trust family with money. Mr. Dreyfuss has the right to expect a return of his money. You nor I know the situation in which he loaned it to them. You all get in touch with reality. Parents or not, if it was a gift - cool but a loan is a loan.
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8-12-2008 @ 9:16PM
blondi said...
If you have money and a relative needs it my experience is you dont loan it unless you can afford to loose it and you just give it to them....It's low risk of loosing a family member over money. I cant even imagine suing my father...for anything...
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8-12-2008 @ 9:28PM
Rita said...
If he had good,kind decent parents that raised him right,sacrificed for him and took care of him until he was 18 or 21 he owes them,no matter how much money is involved it's not enough to pay for good loving parents in this world.He should be ashamed!!
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8-12-2008 @ 11:24PM
Beverly said...
Just remember all parents are not good parents? I am a surviver I know. His parents and Uncle owe him the money, probably Richard depended on for his future.
He need his money back. This just shows me how it was just in the family to take his money.
8-12-2008 @ 9:29PM
Kell said...
You go Richard. I don't blame him one bit!
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8-12-2008 @ 9:49PM
Pami said...
It's a pretty bad low life who sues a parent over money like this. He should have given his father the money. After all, the man took care of him his entire childhood and didn't charge him interest. And it shouldn't matter if he wasn't a good money manager or if it were for some crazy business idea or anything Dryfus didn't approve of, it's his father. never liked Richard Dreyfus for some reason and wouldn't go to his movies, this just confirmes my instincts. I don't care how big of a name he is in Hollywood, he's a pretty small person in my books. I have NEVER asked my parents even to give me money if I ran an errand for them and they could certainly afford to give it to me. They've done too much for me in my life. That's how families are suppose to be. I'm glad he's not in my family. I suppose he would be the type to hand his children a bill when they turned 18 for what it cost to raise them.
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8-12-2008 @ 11:20PM
Beverly said...
We really do not have the right to judge anyone here. Richard
Dryfus was kind enough to lan his parents and Uncle money. To be taken advantage by both of them speaks for itself I think. It shows me that Mr. Dryfus has the right to go after his loans. They were given with family values, and just taken advantage of. I am a parent and if I ever had to borrow from my children I would make sure to pay them back. This loan has probably been an old one showing no hope for payback. Do what you have to do. Not all parents are good ones you know.
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8-13-2008 @ 5:40PM
Christine said...
I believe that the statute of limitations on collecting a debt is 7 years. Sorry Mr. Dreyfus but you should have taken action back in 1991. Hard lesson, consider the loan a gift instead.
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