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Money owed to the deceased

Last post Mon, Aug 03 2009, 10:00 PM by conmankiller. 3 replies.
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  •  Mon, Aug 03 2009, 10:00 PM

    Re: Money owed to the deceased

    Executors have a legal duty to follow the provisions of the will precisely as stated and to ensure all divisions and legacies are paid out in compliance with the express wishes of the deceased person.

    This is after all legitimate expenses, costs and (IHT if any) have been paid out of the estate proceeds once all the monies have been in-gathered. Any debts owed by the estate have to be proven...just in the same manner as any debts owed to the estate before they should be considered as a legal liability.

    The money you each borrowed was on a informal understanding otherwise without written contracts it would be deemed as a gift, therefore not a legitimate or legally enforceable loan. This executor is not correct and could be removed for acting improperly or failing to carry out their duties correctly or held personally liable for any discrepancy. Unless any documentation that stipulated the legal requirements terms and conditions for repayments of the alleged loans were produced, then these sums of money would be deemed as gifts and disregarded from the calculations when distributing the estate.

    (except only for IHT purposes if the estate was large enough.. and the donor has died within Seven years of making the gifts)..which by the sounds does not affect your case.

    • Post Points: 5
  •  Mon, Aug 03 2009, 9:35 PM

    Re: Money owed to the deceased

    Many thanks Huckster,

    At least someone agrees with me. Unfortunately no lawyer involved, just an old friend of the family who was a probate lawyer. I will try to get in touch with them.

    mrruss

    • Post Points: 5
  •  Mon, Aug 03 2009, 9:13 PM

    Re: Money owed to the deceased

    mrruss123

    I agree with you. The arrangement with your father was one of honour only, not legal. Therefore the executor cannot take the amount of loan your father paid to each sibbling off before the estate is divided. Is the executor not working with a solicitor? If so I am surprised that they have not commented on this. You should speak to the solicitor involved in this to seek clarification and if it is wrong they should correct the executor.

    huckster

    • Post Points: 20
  •  Mon, Aug 03 2009, 8:51 PM

    Money owed to the deceased

    Hi,

    I hope someone can help with this one. My father passed away some months ago and one of my siblings is executor of the will. Some time before he died, my father lent me a sum of money, I have recently found out he had also loaned money to some of my other siblings. This loan was given to me on an informal basis to be paid back when I could. I have made no secret of this with my siblings. The power of probate is about to be granted to the executor who has said that they will take off the sum borrowed by each person from their share of the estate (which is not very large) before dividing up the rest.

    I do not believe that this is what my late father would have wanted. I think that he would have wanted all debts owed to him from his children written off at the time of his death and the estate divided equally. If I didn't truly believe this I would not have a problem with the executors wishes. The other worry is that my honesty in disclosing the amount of the loan to my siblings could have been a mistake, I understand that the sums they say they borrowed from him can not be coroberated in any way. Of course, the sum I borrowed is a fair bit larger than what they say borrowed.

    I don't think I have a legal obligation to pay back what I borrowed but am unsure how to procede with this issue. Any help appreciated.

    • Post Points: 35