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The answer depends on the laws of the state of probate, because not all states have the same such laws. In general though, the executor can make such a loan, but with some limits. An executor has complete control and possession over all the assets of the estate and has the duty to invest those assets so that they earn the estate income during administration. In that sense, it is possible that an executor could make a loan to a beneficiary at an interest rate higher than what could be gotten if the funds were kept in an estate account. The loan would have to be made with a competitive rate of interest, because those monies would be in the estate account earning interest but are instead in the pocket of the beneficiary. The executor must make absolutely sure that the loan is protected from loss or he will have to pay for any losses.
All states have laws which are referred to as prudent investment acts or some similar wording. They describe the types of investments that executors may make. Some states might specifically prohibit such loans. Others might allow them, but may require more security than just the anticipated inheritance. Those laws must be reviewed first.
There are many dangers in making such loans so they are usually not done. Sometimes beneficiaries lose their rights to inherit or have their rights attached by creditors. If that happens, the executor cannot claim that he has given the beneficiary the inheritance ahead of time. The executor could find himself in the position of having a worthless loan with no security.
What else can I help you with?
What is the amount to be deducted in 2010 for Medicare?
For most beneficiaries, Medicare Part B for 2010 is $96.40/month (same as 2009).
Has ssi been order by the court to pay childsupport?
SSI beneficiaries cannot be ordered to pay child support. Child support cannot be deducted from SSI payments.
Does your child support money get deducted from your ssi check?
No. SSI beneficiaries are exempt from paying child support (except for past-due support). Child support cannot be garnished from SSI payments.
What is deducted?
Deduction is a synonym of subtraction. Something that can be deducted or subtracted.
What is the opposite of word deducted?
The opposite of the word deducted is ADD.
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
Should social security be deducted from paycheck before or after health insurance is deducted?
Before
What is the income remains after all expenses have been deducted?
The income that remains after all expenses have been deducted is referred to as net income or profit. It represents the actual earnings of an individual or business, reflecting the amount available for reinvestment, savings, or distribution. Net income is a key indicator of financial health and performance, often used to assess profitability over a specific period.
Is wage calculated before or after taxes are deducted?
Wages are typically calculated before taxes are deducted.
What happens if one beneficiary does not pay their share of the real estate tax?
You should keep detailed records with copies of checks used to pay the expenses. When the property is sold, the beneficiary's share of the expenses should be deducted from his/her share of the proceeds and that amount should be added to the share of the proceeds distributed to the other beneficiaries.
Is freight on sales deducted from sales?
Type your answer here... No. Frieght is an expence and it is deducted from the profit derived from the sales
How often is health insurance deducted from my paycheck?
Health insurance is typically deducted from your paycheck on a monthly basis.
