When A Benificiary Owes An Executor For A Previous Loan

[PhilInTheUK]

My Sister in Australia is the sole Executor on my Mums UK Estate, she has the Grant issued on its way to Australia.

My younger sister in the UK who is a Benificiar of the Will has an opitstanding debt to my Sisiter in Australia of about £1250, it is a bona-fied debt with a short agreement which my younger Sister refused to pay back.

My older suster will soon be in posession of the monies from the Estate in her Australian bank account. She is enquiring if she can withold the amount of the original non-related but Bona-Fied debt, i.e. knock the £1250 off my younger susters realization of the Estate.

Any replies would be appreciated.

Thanks

[des8]

As executor she has certain duties, one of which is distribution of the assets in accordance with the terms of the will.
So if she was to direct part of her sister's legacy to herself to pay off the loan she would be in breach of her fiduciary duties and guilty of theft.

Whether or not the debtor would complain or take (excessively expensive) action if she should deduct the amount owing is another matter