My question involves estate proceedings in the state of: California
Looking for precedents or general advice.
At the time of death, one of the beneficiaries of a living trust had a documented sizable loan owed to the decedent who had established the trust. There is no language in the trust documentation that addresses this situation (e.g., "all outstanding debts to beneficiaries will be considered satisfied", etc.). It was the intention of the decedent that the assets in the trust be fairly divided between two siblings. In terms of the law, how should this debt be treated by the successor trustee, who is executor of the estate? In general, how are debts owed to decedents considered in California civil law?