August 2021

We all want to do right by our children. Sometimes, even as adults, our children encounter cash flow issues and need a little help. So, as parents we are often called upon to lend money to our children. 

As lawyers, we hear similar stories all the time: parent advances money to a child and the child is not making payments on the loan. So, the legal question is how should you handle loans in an estate plan? Should the outstanding balance of the loan count against the child’s inheritance on your death? Alternatively, do you wish to forgive the child’s loan on your death?

Let us start off by saying that there is no right or wrong way to do this. You should do what is appropriate for you and your family. There is no requirement that you make your beneficiaries repay loans, and there is no prohibition against doing so. You get to do what you want. However, it is important for you to be clear in your estate planning documents what your intentions are.

Get to Know the Littman Krooks Team

Meet Sandi Rosenbaum, Special Education and Special Needs Advocate

Q: What is the best career advice you have received?
A: "Do what you love; a career path doesn’t have to be a straight line."

Q: If you weren't working at Littman Krooks, what would you be doing?
A: After 25+ years, being a special needs parent is such an important part of my identity that I expect that, some way or another, I’d be working on behalf of people with disabilities and their families.

Q: What hobby did you devote more time to in the last year?
A: Walking. In my daily quest for 10,000 steps I have discovered some beautiful local spots.  

Q: What is the ideal way to spend a Sunday?
A: At the beach

Q: What are you reading?
A: Caste by Isabel Wilkerson

Q: Who is your most admired historical figure?
A: Justice Ruth Bader Ginsburg

Sandi's Favorites:

  • Food: Steak with a nice red wine
  • Movie: The Way We Were
  • TV Show: Everything’s Gonna Be OK
  • Vacation Destination: Fire Island

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