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  • FIRST POST
    • lemonpopsicle
    • By lemonpopsicle 6th Jan 18, 2:11 PM
    • 650Posts
    • 4,315Thanks
    lemonpopsicle
    Unpaid loan and inheritance
    • #1
    • 6th Jan 18, 2:11 PM
    Unpaid loan and inheritance 6th Jan 18 at 2:11 PM
    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
    Life's little instructions- Treat everyone you meet like you want to be treated..Watch a sunrise at least once a year..Strive for excellence not perfection
    2 SC no.70 140/350
    SPC no.73 SPC9 248 SPC10 target 250
    DFBX12 No. 069 7719 / 7719 DEBT FREE 30/11/12
    2013 mfw No.4 MORTGAGE FREE 5/8/13
Page 1
    • MichelleUK
    • By MichelleUK 6th Jan 18, 3:00 PM
    • 355 Posts
    • 226 Thanks
    MichelleUK
    • #2
    • 6th Jan 18, 3:00 PM
    • #2
    • 6th Jan 18, 3:00 PM
    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
    • By lemonpopsicle 6th Jan 18, 7:25 PM
    • 650 Posts
    • 4,315 Thanks
    lemonpopsicle
    • #3
    • 6th Jan 18, 7:25 PM
    • #3
    • 6th Jan 18, 7:25 PM
    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).
    Originally posted by MichelleUK
    Thanks, that's so obvious now, but we couldn't see the wood for the trees. x
    Life's little instructions- Treat everyone you meet like you want to be treated..Watch a sunrise at least once a year..Strive for excellence not perfection
    2 SC no.70 140/350
    SPC no.73 SPC9 248 SPC10 target 250
    DFBX12 No. 069 7719 / 7719 DEBT FREE 30/11/12
    2013 mfw No.4 MORTGAGE FREE 5/8/13
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