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Inaccounting, if one business partner dies, and in the will "forgives" shareholders loans?
Does the forgiven shareholders loan become income to the company, or can it be simply a write off of debt?
3 Answers
- Anonymous7 years agoFavorite Answer
Wills cannot be used to "forgive debts." The partnership can elect to write off a debt as a bad loan but that has nothing to do with a will - which simple directs how the deceased's assets are to be disposed of.
- wg0zLv 77 years ago
Neither. The dead guy's estate cannot force the remaining business partners to eat a loss by writing off receivables. It's FRAUD.
It IS legal for the will to direct that estate assets be used to pay off certain debts until the debts are paid or all estate assets are consumed.
