Executor's Duties When a Beneficiary Owes Money to Estate

[dasmadchen]

My question involves estate proceedings in the state of: Idaho

If a beneficiary owes money to an estate and also received money as a gift (other beneficiaries are suppose to receive a gift but haven't yet), can the executor calculate it in when dividing up the inheritance? What if the amount owed and the gift are common knowledge (several witnesses) but not legally documented?

This scenario hasn't occurred but could likely happen. Should the person who loaned the money get legal documentation like a promissary note both for the amount owed and the gift?

[Mr. Knowitall]

The executor presumably would list the debt as an asset of the estate, perhaps proposing a distribution in which the debtor's inheritance is offset by the amount of the debt. If the debtor wants to dispute the validity of the debt or amount owed, the debtor can bring an appropriate motion in the probate court.