Unpaid loan and inheritance

lemonpopsicle

Hi,
My husband is an executor for his father's estate. There are 3 siblings including himself. One of the siblings (A) borrowed money from his father and was going to pay it back, but unfortunately didn't, before his father passed away.
My husband's father has always treated the siblings the same.
We are trying to work out how to apportion the estate, do we

a. From the inheritance pay the loan amount to each of the other 2 siblings then divided what's left by 3,
b. Divide the inheritance into thirds and then deduct A's loan amount from his share and divide it between his two siblings?

Hopefully someone can advise? We just want to do the right thing. Thanks

NordicNoir

Add the unpaid loan to the estate. Divide this by 3, then deduct the loan amount from the amount paid to the 3rd sibling.

Example, loan is £10k and estate is £200k. If the loan had been repaid, the estate would have been £210k. This would mean that each person would get £70k. Two would actually get £70k and the other £60k (i.e. £70k less the outstanding loan).

lemonpopsicle

MichelleUK wrote: »

Add the unpaid loan to the estate. Divide this by 3, then deduct the loan amount from the amount paid to the 3rd sibling.

Example, loan is £10k and estate is £200k. If the loan had been repaid, the estate would have been £210k. This would mean that each person would get £70k. Two would actually get £70k and the other £60k (i.e. £70k less the outstanding loan).

Thanks, that's so obvious now, but we couldn't see the wood for the trees. x