By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Estate Planning Attorney
A daughter wants a loan from her parent(s) so that she can go to school for a graduate degree. She suggests that the money be an advance on her inheritance. Presently her parents’ Last Will divides their estate into thirds (she has two sisters). The parent is willing to make the loan but wants to make it clear that if she pays mom back, she gets her full third, and if anything on the loan is outstanding when mom passes away, it’s deducted from her share. How can this request be honored?
The daughters desire to formalize the arrangement with mom is smart. Very Smart! By being proactive she will hopefully eliminate any resentment the other children might have over the daughter’s “advance” inheritance. Mom’s goal can be achieved by the inclusion of specific language covering the loan in her Last Will.
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