Their work includes a number of contentious issues of estate, estate administration, property rights, inheritance and tax planning after death. It deals with complex and high quality issues for a number of clients. Lucy has particular expertise in senior law and in the work of the Court. The executors have no choice in this case. They are required to recover assets (including all loans), repay the deceased`s debts, pay expenses and inheritance tax before dealing with beneficiaries. Loans are estate assets. If the executors decide that the loans should not be repaid, they will reduce the size of the estate and thus influence the amount available to these beneficiaries in the will. They would undoubtedly be sued by the beneficiaries for their loss. Of course, you don`t have to say that a loan needs to be “depreciated.” You can also indicate in your will the outstanding amount of credits you expressly wish to repay. This can give your performers some clarification of your intentions.
The lesson to be learned is that if you lend money to a relative or friend, if you have signed an agreement to confirm the terms of the loan, so that your executors find it easier to force repayment. It makes sense to have a written agreement so that both parties know their terms and that everything is clear from the outset. These are the vague rules, which are much more likely to cause death problems than if everything was properly documented from the beginning. Below, we have outlined three scenarios in which some confusion may arise with respect to unpaid credits after the death of a person. But even if it`s now in your estate, you can`t ignore the debts. Creditors can apply for an “insolvency management decision” within five years of death. This can have the effect of splitting the property in half and forcing the sale. So it`s in your best interest to try to reach an agreement with people who owe money and try to pay for it themselves. In most cases, the proceeds of life insurance are directly intended for a designated beneficiary and are not part of the estate.
However, if no beneficiaries have been identified, the proceeds of life insurance could be part of the estate and be used to pay off unpaid debts. It depends on the conditions of the directive and its implementation. If you have received a loan from a relative in their lifetime, if that person dies, the loan must be repaid. If you, the borrower, in any case, are entitled to a share of the estate – perhaps you are the child of the deceased – you will receive your share of the rebate after deducting the loan amount.