When implementing an Orange County trust or estate, many issues and questions will likely pop up during the process. One such issue may involve loans that were made to beneficiaries before the decedent passing away. These loans may trigger certain tax and legal ramifications, and therefore must be handled properly. If you are the executor or trustee of an estate or trust, consider taking the following actions:

  1. Consult with an experienced trust administration attorney in Orange County for guidance in order to ensure that you are handling the loan properly.
  2. Determine whether the parties pertaining to the loan signed a promissory note.
  3. Determine whether an interest rate and loan repayment terms were established.
  4. Carefully review the terms of the will and trust to see if the outstanding loan is addressed.
  5. Calculate the value of the amount owed to the estate for purposes of valuing the estate for estate tax reasons.
  6. If the terms of the will or trust call for it, ensure that each of the beneficiaries is made whole.

Every estate administration has its own unique complexities. Fortunately, trustees and executors do not have to implement estate plans alone. Fiduciaries are typically entitled to seek the guidance of experienced legal professionals, including attorneys and tax advisors.

If you need assistance administering an estate, contact our office today for a consultation. We have assisted many families in winding up the affairs of their loved ones. Learn what our other clients have to say about us by viewing our testimonials.

James F. Roberts
Founder and owner of the Law Office of James F. Roberts and Associates, a premiere estate planning law firm
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