If my now deceased mother loaned $25,000 to one of my siblings, can the rest of the siblings forgive that debt without any legal ramifications?

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If my now deceased mother loaned $25,000 to one of my siblings, can the rest of the siblings forgive that debt without any legal ramifications?

Asked on April 18, 2012 under Estate Planning, Indiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I am so sorry for your loss.  A little more information is needed here.  Generally, it is up to the executor of the estate to weigh this matter in light of the status of th estate because it is the executor's obligation to collect the debt. If the monies are needed to administer the estate they can not breach their fiduciary duty and forgive it.  So while your intentions are good the executor has to think about creditors, etc.  If the condition of the estate was such that the money would not make a difference to other issues in probate and you all agreed and signed a document to that effect then it could be possible.  Good luck.


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