Loan forgiveness and final estate distrib

[dbalok]

NYS - My mom died intestate, my father pre-deaceased her. My mom had lent me money for a home prior to her death. We had a written contract which contained a clause that stated upon my mom's death the debt would be forgiven. There was nothing written in the contract with regard to this being considered an advancement of my share of her remaining estate upon her death. However, the executor wants to take the amount of this forgiven loan balance out of my share of the remaining estate distribution to all heirs. I thought that NYS law requires that a loan agmt must have the words to the effect that this is an advancement in it or else it couldn't be considered as part ot my share of the remaining estate assets? True or false?

 

[advisor10]

JULY 26, 2001

DEAR DBALOK:

This executor's actions are highly improper--it's as if he doesn't want to understand the meaning of "loan forgiveness".

How much money are we talking about here?

If you think it would be worth it, you should have an attorney file a formal objection with the probate court so that the judge will know exactly what this executor is doing.

If you think it's not worth protesting, just to keep the other heirs happy so they will receive a larger share, and if your share of the estate is otherwise still large enough so that you can afford the deduction, then go ahead and let the executor get away with what he is doing.

Please post this question on the http://www.lawguru.com website so you will more likely receive a response from a New York attorney.

SINCERELY,

[email protected]