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If 1 of 3 brothers received a loan of $34,000 shouldn't the

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other 2 get $34,000 before...
if 1 of 3 brothers received a loan of $34,000 shouldn't the other 2 get $34,000 before the estate is settled after death
Submitted: 2 years ago.Category: Tax
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8/15/2015
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,581
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Thank you for your question --- this is definitely a difficult situation, and one I am sure is emotionally charged. The death of loved ones is a hard time, and money disagreements can compound that.

The answer to your question depends on how the estate is set up --- what the will says, how it reads, etc. The timing of the loan, and the loan agreement terms could come into play as well.

In a situation where there are three beneficiaries who are to split everything equally and the loan was made after the death of the decedent then yes --- what you are saying would be true. Everyone else would get $34,000 first and then split the remainder. However, it could be more complicated than that --- take all your documents to an estate attorney licensed in the state where the estate is located for an opinion

Please let me know if you need anything additional. If not, please rate positive so that I may receive credit for assisting you today.

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Customer reply replied 2 years ago
There was no will this was a loan, to stop a fore closer
Customer reply replied 2 years ago
the loan was made before my mother pass
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago

Was it made prior to the death of the decedent? If so, then it doesn't matter -- if the estate and the executor made the loan, then yes -- you would need to factor that in as a distribution to that heir when considering other beneficiaries if the loan was not paid back.

I wish I had better news. Please don't forget to rate once your questions have been answered.

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Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago

Just got your second part --- if the loan was made before your mom passed away, then it doesn't matter, unfortunately -- especially if it was no documentation on the loan.

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Megan C
Megan C
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