If a deceased made a loan before their death, how is it handled by their estate?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a deceased made a loan before their death, how is it handled by their estate?

There are 5 children who inherited their parents estate to be distributed equally upon their death and 1 child has an outstanding loan of $35,000 to the parents. Is this handled separately or can each of the other 4 children receive $35,000 each before the 5th receives 20% of the remainder?

Asked on June 4, 2013 under Estate Planning, Oregon

Answers:

Nathan Wagner / Law Office of Nathan Wagner

Answered 8 years ago | Contributor

The loan could be handled separately, but the more common way is to have the 4 others receive $35,000 while the 5th child receives cancellation of the $35,000 debt. Then the remaining estate assets are divided equally among all 5 heirs. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption