Debt payment to family members
My question is: Mother (Cleo) instructed her estate be shared in equal parts to her 3 children. Kristi, Bill and Bob. There are no extenuating circumstances or other pertinent details. Bob owes Cleo's estate $160,000. Bill owes the estate $80,000. In order to adhere to Cleo's instructions what amounts should be paid to each child to properly allocate repayment of Bob and Bill's debt to the estate? How much and to whom should Bob pay his $160,000? How much and to whom should Bill pay his $80,000? I'll need a reply on a official letter head. If possible. Also, regarding gifting. Please confirm that gifts over $17,000 are tax free as long as the gift report tax return is filed. The amount over $17,000 is reported and simply gets applied to the lifetime exemption. The gift would be from my deceased mother's trust account. My brother is the executor.
