Legal Question in Wills and Trusts in California

Listing Beneficiary Loans to Estate for Probate Court

Our parents passed away. There are four natural, adult children. One sister and I are Co-Executors. She is the only one that does not owe my parents Estate any money. We have all agreed, after researching what little proof and documentation there was as to the dollar amounts we three owe. I always said that I would pay the debt amount of my deceased ex-husband, as the loan to him helped me as well during our marriage 20+ years ago. I am also going to pay back the loans of my son. I do not want the total dollar figure to go in to the Probate Court as ONE number, but broken down: Deceased ex-husband=$18,000 Son=18,082 and Me=$2000 for a total of $38,082. My Co-Executor is adamantly refusing to allow the breakdown, but insists that it be lumped in one sum that I assume. I would like to be able to write off a portion as uncollectible loans against my taxes. Still, she refuses, and has brought in the other siblings to help her fight her cause. What does this mean? What should I do? They were interest free loans. It has always irked her that the Estate would have been larger if interest would have been charged, so her share is less, but that was my parents way of helping us. Can she sue me for interest?


Asked on 8/19/05, 2:32 pm

2 Answers from Attorneys
Michael Olden Law Offices of Michael A. Olden

Re: Listing Beneficiary Loans to Estate for Probate Court

why do you rally wish to do so --- irs will not allow you to write off debt in this manner if i am correct -- so what's up -- you have not even to us the total estate value and what the attorney for the estate says which is significantlly important -- i have practiced probate/estate planning for over 30 years in the bay arear and if you wish to contact me you may do so at 510-465-6000

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Answered on 8/21/05, 10:54 am
Ken Koenen Koenen & Tokunaga, P.C.

Re: Listing Beneficiary Loans to Estate for Probate Court

You cannot write off an unpaid loan to a family member, so your reason for doing so is not relevant. Of course, there is no reason for it not to be broken out, either, but for peace in the family's sake (unless you have a more significant reason) you should probably just drop the issue.

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Answered on 8/19/05, 2:46 pm


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