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Beneficiaries Loans to Deceased Parents Estate

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zukerkorn

Junior Member
What is the name of your state? California
My sister and I are Co-Executors of our parents estate. She is the only one that didn't have a loan from our parents. Nothing was signed with the parents and they always said they helped their children by giving them interest-free loans. Although difficult to ascertain exact dollar amounts of three of the beneficiaries loans to our parents, because of my elderly father's record keeping, (a lot in his mind), we finally did so, and agreed to a final dollar figure owed by each one. The only sibling (all are natural), that did not have a loan was the sister who is my Co-Executor. There are four of us.
I made a request of our attorney to breakdown my loan to show that I had agreed to pay my former husbands loan, who is now deceased. I also agreed to take on the loan to my son. So, I wanted it to read A=$5000, B=$3000 and C=$1000 for a total of $9000.00 that I agreed to pay. Co-Executor now is on a rampage that she will not allow that and has brought in the other siblings to help her fight me. Is there an advantage or not to me listing it this way. Or, worse, what could she have on her mind for later down the road? I was hoping that I could write off part of the ex-husbands as an uncollecitible loan against my inheritance. The estate is below 1.5M Can she come back and sue me for the interest that wasn't collected on those loans? I have been advised to deny that loan and not pay it as nothing was in writing other than a journal entry in my fathers journals listing the amount and the ex's name. Even the estate attorney told her it made no difference. Will it make a difference to the Probate Judge? Please help.
 
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Dandy Don

Senior Member
It is a common occurrence that loans are forgiven after the death of the decedent.

I commend you for wanting to do the right thing and pay them off, but that is not really needed or wanted here, which is a blessing-in-disguise for you. Since co-executor is stupid enough not to ask for this repayment from you, you would be wise to drop the matter entirely, since that's $9,000 that you don't have to pay off. And stop worrying about later on down the road--if she has no documentation to verify that the $9,000 is owed, then she has no legal standing to sue you for that or the interest later on--that is not even on her mind and you should not even mention anything about that.

DANDY DON IN OKLAHOMA ([email protected])
 

zukerkorn

Junior Member
Beneficiaries Loans to Estate of Deceased Parents

I may not have stated clearly, that we are ALL going to pay our loans back to the Estate. I have agreed to take on my deceased ex-husbands loan as well. I'm going to use the exact figures here. In my post I abbreviated for the sake of it being easier.

Deceased husband owed: 18,000.00
My son owed: 18,082.00
and I owed: 2,000.00 = 38,082.00

All I want, is for the loan amounts to be broken down as above. Co-Executor, sister, is adamant that it will NOT be presented to the Probate Judge like the broken down list above, but one amount of $38,082.00.
Are there any ramifications for me to take on a loan amount in the total sum?
 

anteater

Senior Member
I am puzzled by why you are agreeing to pay back loans for your deceased ex and son, but I guess that is up to you. You are not going to get an income tax deduction for paying off someone else's loan.

I am bewildered by why this matters to either of you or the other siblings, as long as everybody agrees that the amount owed to the estate is correct.

Somehow, I get the feeling that there is a lot more going on here.
 

Dandy Don

Senior Member
Don't aggravate the co-executor by insisting that the amount be detailed. You all can work that out privately when you are ready to repay.
 

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