Q: I have a question about will distribution.

A: Let's say that you have two siblings, for a total of three of you. Let's say the estate is worth $90,000 after all creditors have been paid. Without the loan, you would have each received $30,000.

But, let's say that you owed $6,000 to your father. You've said the will is clear about you paying back the loan. One way of looking at it is that the estate is worth $96,000. You each get $32,000, but part of that is funny money. But, you will need to pay your siblings for the note, out of your share. You give $2,000 to each. You personally, actually inherit the right to collect from yourself, the other $2,000. That's $2,000 for each of you. Your cut at the end, is $26,000. It all totals up to the $90,000. You got 26K, they got 32K and 32K.

The other way of getting there is you each get $30,000 in cash and a 1/3 interest in the note. You pay off the 1/3 interest in the note to each of the siblings. You give $2K to both. So your cut drops to $26K and their cut goes up $2K. Still, we get to $26K for you and $32K for your siblings.

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