Legal Question in Wills and Trusts in Virginia

First, watch out that you may be in Virginia but if the father in law is in a different State, then the laws of another State might govern the question. The laws of the State where he was a resdient at his death will control. I can only tell you about Virginia law.

It depends on what the father in law intended about the loan.

If it is clear that loan was really a loan, which the father in law wanted paid back, then the executor of his estate has a DUTY to collect all money owed to the estate in order to distribute it according to his will or standard inheritance rules.

Therefore, the executor (personal representative) * MUST * try to collect this money and treat it as an asset fo the estate before distrbuting the total assets to the heirs. He would have a duty to the other heirs.

This of course can be done by simply reducing the amount of money distributed to that child.

However, it can sometimes be unclear whether the intention was a real loan or a gift during the father-in-law's life. It needs to be clear exactly what was really going on.