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If one heir owes a small debt to an estate should the debt be paid before the estate is divided or should the debt be deducted from that beneficiary's share?
Wiki User
∙ 13y ago
You should ask the attorney who is handling the estate. If it is a small estate there may not be any tax consequences either way.
Wiki User
∙ 13y ago
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If one heir owes a small debt to an estate should the debt be paid back first before the estate is divided or should the debt be deducted from the estate total then divided between the two heirs?
You can see the answer to this if you imagine an amount of debt to be the whole estate. That is one heir is holding all the assets. If the debt wasn't repaid first, before division, the other heir would get nothing at all. The estate is the total after all debts have been repaid. So you add the value of the debt to the residual estate. Give half of the result to the one with no debts. This has the same effect as the debtor repaying a sum equal to half his debt to the non-debtor, and then dividing the existing estate by 2.
Can the debtor of a beneficiary have IRS seize the money paid to beneficiary from a family members life insurance?
Yes, the debts must be paid before the estate is divided up between beneficiaries.
How do you divide an estate when two of three heirs owe money to the estate?
The value of the estate, which includes the debts owed to it as well as the debts the estate owes, is divided up into three parts. The amount those that owe the estate money receive is off-set against the debt. If there are more debts owed by the estate then it is worth, those owing money will have to pay it to the estate.
Can you get some money before the estate is settled?
nah
Is there an affect on the amount of an inheritance if the heir is carrying considerable debt at the time of inheritance?
If the heir is indebted to the estate their indebtedness will be deducted from any inheritance they receive under the will. For example, suppose you borrowed $10,000 from your grandfather to buy a car and you signed a promissory note. He died and left you $15,000 in his will but did not mention the loan. Your debt would be owed to his estate and would be deducted from your $15,000. If on the other hand the beneficiary simply has a great amount of personal debt, it has no affect on how much they would inherit under a will. A gift from a testator is set forth in the will and your personal financial condition has no effect on your gift whatsoever unless your creditors find the estate and freeze your inheritance.
If one heir owes a small debt to an estate should the debt be paid back first before the estate is divided or should the debt be deducted from the estate total then divided between the two heirs?
You can see the answer to this if you imagine an amount of debt to be the whole estate. That is one heir is holding all the assets. If the debt wasn't repaid first, before division, the other heir would get nothing at all. The estate is the total after all debts have been repaid. So you add the value of the debt to the residual estate. Give half of the result to the one with no debts. This has the same effect as the debtor repaying a sum equal to half his debt to the non-debtor, and then dividing the existing estate by 2.
If you borrowed money from a parent in Georgia by law can they require you to repay it to their estate or have it deducted from your inheritance?
Yes, it can be considered a draw against the estate and the estate has the right to ask for the money back.
Once an estate is closed and the beneficaries are equally deeded the house. Can the exuctrix take money from the sale proceeds to pay other beneficaries not paid before the estate was closed?
if the house is sold can that money be divided before the total estate is closed
Does an executor have full control of how the estate is divided if there is no will?
The executor has no control over how the estate is divided. Each state has laws on how the property is divided when there is no will.
Can an undivided interest of a half section of farmland that's in life estate be divided?
Even if divided it would remain subject to the life estate.
Can you claim real estate closing costs on your taxes?
Consult the Federal tax instructions. There are a number of items in the closing costs that can be deducted.
Co-administrator of estate?
The co-administrator of an estate has as much equal access to the estate as the administrator. If property or the estate needs to be divided, the parties will need to agree.
How was french society divided hierarchically in the old regime?
the french society in the old regime was divided into three they were the ; *clergy as first estate *nobles as second estate *commoners as third estate
Who is responsible for deceased brothers debts?
When someone dies leaving debts they must be paid first out of the deceased estate and any monies owed to him collected before the remainder of the estate is divided between the heirs and beneficiaries. If there is not enough money in the estate to settle the debts then they "die" with the person.
What were the social divisions in France before the revolution?
French Society was in pre-revolutionary France was divided into three political classes or Estates. The First Estate was the Catholic clergy, the second estate was the nobility, and the Third Estate was everyone else.
How do you collect expenses from siblings after sale of inherited house?
The estate of the owner must be probated in order for title to the real estate to pass to the heirs, or, for an estate representative to convey legal title to any buyer. When the estate is probated the court will appoint an Executor if there is a will or an Administrator if there is no will. The court will issue Letters Testamentary or Letters of Administration. Those letters give the estate representative the authority to settle the estate according to the provisions in the will or/and the state probate laws, under the supervision of the court. The debts of the estate must be paid before any property or proceeds from a sale can be distributed to the heirs. In the case of an Executor, the real estate can be sold only if that power was granted in the will or by a license issued by the court. An Administrator must obtain a license to sell from the court. Since the estate representative has the power and authority to sell the real estate, and the authority over the estate, there should be no question regarding how to 'collect expenses' after the sale of the property. The expenses should be deducted before the proceeds are distributed. If the Executor or Administrator has distributed the proceeds prematurely, they must get funds back to pay the expenses or they will be personally responsible for paying those expenses due to their mishandling of the estate. Remember, the debts of the estate must, by law, be paid before any property can be distributed. If the house was sold by the heirs after the estate had been settled in probate, the proceeds should not have been distributed by the sibling who represented the family in the sale until the expenses were deducted. The person who handled the sale will be held personally responsible for paying the expenses incurred by the sale and they may have to sue their siblings for reimbursement.
Is an estate administrator paid after the estate is settled or can they collect before it is settled?
They can collect before it is settled
