Do you have to call in all loans owed to the deceased in probate?

TropicalJones1

Most of the guidance I have seen concerns debts owed by the deceased. This query concerns a debt owed to the deceased.

He had loaned an acquaintance a considerable sum of money to start a business (documented if a bit casual). There is likely to be a bit of dispute as to how much is owed and when it should be paid. Does any dispute/court action have to be dealt with by the executor or can the right to recover the debt (whatever it is) be passed to the beneficiaries and probate completed?

The beneficiaries can then deal with the debtor directly? The beneficiaries are two adult children who will receive equal shares of the estate.

Keep_pedalling

It should be the responsibility of the executor to call in any depts owed to the estate. Is the estate anywhere near IHT territory? 

user1977

What do the beneficiaries think about it?

madbadrob

Keep_pedalling said:

It should be the responsibility of the executor to call in any depts owed to the estate. Is the estate anywhere near IHT territory? 

Exactly what I was going to say.  
The executor as an obligation to recover all debts to the estate of the deceased, once having done this settle all debts of the estate and then paying all of the gifts where possible of the will.  

Documented is good but id look at having a formal agreement in place because money will bring the worst out in people and it could be possible on the death he just says i didnt agree to pay it back they gave it to me.  The fact youre worried enough to ask advice now would suggest this is a possibility.

Rob

Marcon

madbadrob said:

Keep_pedalling said:

It should be the responsibility of the executor to call in any depts owed to the estate. Is the estate anywhere near IHT territory? 

Exactly what I was going to say.  
The executor as an obligation to recover all debts to the estate of the deceased, once having done this settle all debts of the estate and then paying all of the gifts where possible of the will.  

Documented is good but id look at having a formal agreement in place because money will bring the worst out in people and it could be possible on the death he just says i didnt agree to pay it back they gave it to me.  The fact youre worried enough to ask advice now would suggest this is a possibility.

Rob

Looking at the first post, the death has already occurred, surely:

TropicalJones1 said:

Most of the guidance I have seen concerns debts owed by the deceased. This query concerns a debt owed to the deceased.

He had loaned an acquaintance a considerable sum of money to start a business (documented if a bit casual). There is likely to be a bit of dispute as to how much is owed and when it should be paid. Does any dispute/court action have to be dealt with by the executor or can the right to recover the debt (whatever it is) be passed to the beneficiaries and probate completed?

The beneficiaries can then deal with the debtor directly? The beneficiaries are two adult children who will receive equal shares of the estate.

doodling

Hi,

Note that the lender dying would not be a valid reason to call in the loan, unless it was included in the terms of the loan.  There is a real risk that an executor could be stuck with managing the loan until it is paid off in whatever manner it was originally agreed to be.

madbadrob

Marcon said:

madbadrob said:

Keep_pedalling said:

It should be the responsibility of the executor to call in any depts owed to the estate. Is the estate anywhere near IHT territory? 

Exactly what I was going to say.  
The executor as an obligation to recover all debts to the estate of the deceased, once having done this settle all debts of the estate and then paying all of the gifts where possible of the will.  

Documented is good but id look at having a formal agreement in place because money will bring the worst out in people and it could be possible on the death he just says i didnt agree to pay it back they gave it to me.  The fact youre worried enough to ask advice now would suggest this is a possibility.

Rob

Looking at the first post, the death has already occurred, surely:

TropicalJones1 said:

Most of the guidance I have seen concerns debts owed by the deceased. This query concerns a debt owed to the deceased.

He had loaned an acquaintance a considerable sum of money to start a business (documented if a bit casual). There is likely to be a bit of dispute as to how much is owed and when it should be paid. Does any dispute/court action have to be dealt with by the executor or can the right to recover the debt (whatever it is) be passed to the beneficiaries and probate completed?

The beneficiaries can then deal with the debtor directly? The beneficiaries are two adult children who will receive equal shares of the estate.

That could be taken as he had already passed however it could also be read in the form that the person writing this is the loanee or someone who knows the loanee and they are trying to settle possible issues before they occur.  Along the lines of proactive and not reactive.  Which is how I read it and how I responded to it.  Of course if the loanee as passed then the majority of what I said is impossible to complete.  

Rob