Tuesday, 4 November 2014

my parent dies with 5000 in assets. mom estate will pay off a 1000 loan for a sibling because she signed for the loan. am i correct in sayin...

Question

my parent dies with 5000 in assets. mom estate will pay off a 1000 loan for a sibling because she signed for the loan. am i correct in saying that siblin owes each of us 250

my logic is we would have 1250 each from the estate and we are are getting only 1000 so he owes it to us



Answer

Not necessarily. I Mom signed for the loan, as a gift to her child, this is her debt and comes off her assets in determining what everyone gets ($1,000 each). On the other hand, if it was understood, that Mom was signing only because otherwise sibling could not get money, and Mom had an expectation of repayment, sibling should repay debt and your conclusion seems correct. Since I do not know all of the details and what was the agreement between Mom and sibling, I cannot give a definite response.



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