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Handle offsetting a pre-death loan to beneficiary against his share of residue?

1. Set up the Loan as an asset.

2. Realise that money into a separate cash account. (Called something like 'Loans due to the estate').

3. Use the interim distribution function to enter a distribution against the relevant beneficiary equal to  the amount of the loan to be repaid and in the narrative words could be used such as “ Paid to the executors to repay outstanding loan”. The Loan cash account will be debited.

 

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