Why?What does the loan agreement say?
There is one, I presume
Hardly when he handed it over to his own company,It would seem a prudent thing to have done when the money was handed over
On that basis, just write it off.Thank you - no formal agreement but the wishes are not to chase and taken off the balance sheet on death
the executors and beneficiaries also wish to follow these wishes on death -
Vanishingly unlikely.Writing off the loan may have tax implications for the company
And for the owners of the company in certain casesIt may be his company, but it still a separate legal entity - we don't know if there were any other shareholders. Directors, even of their own company, have legal obligations to follow. Writing off the loan may have tax implications for the company
On a net basis that could be the case but there could be different beneficiaries for the loan and the companyIt’s a circular transaction anyway, surely?
My company owes me €100 and I pop my clogs.
My assets include either:
a) €100 loan note plus (Company - €100), or
b) Company
The value of what’s being inherited stays the same.
Based on the background facts, that’s very unlikely. There’s no loan agreement and it’s described as ‘his company’. On that basis, I can’t see how an undocumented loan could be allocated separately.On a net basis that could be the case but there could be different beneficiaries for the loan and the company
I dont disagree re probability. Making the point for the OPs benefit in case relevant. And just because there isn't a formal loan agreement doesn't mean there isn't a record of same. What about the company's accounts filed with the cro? A loan owed to a director is likely to have been a material disclosure.Based on the background facts, that’s very unlikely. There’s no loan agreement and it’s described as ‘his company’. On that basis, I can’t see how an undocumented loan could be allocated separately.