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Question from redhandedNov-7

My father passed away in October.  He left his only daughter and his 2nd wife as the only beneficiaries of his accounts #### Government Employee's Credit Union in Texas with a 50/50 distribution. 

There is a pending loan on my father's account that must be paid before distribution is made.

Can GECU withhold distribution of monies if the first beneficiary refuses to pay the loan out of the whole balance and prefers that the loan be paid out of the second beneficiary's half?

What if the first beneficiary doesn't sign?  Does that mean that the second beneficiary never get's 50% of the distribution?

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knort4 Nov-8 85250.2
These are questions you need to be asking the credit union.  Whichever beneficiary refuses to sign is stupid!! It should be obvious that the credit union is entitled to get their money first, and believe me, the credit union WILL get paid, and then split the money between the 2 beneficiaries. Is this the only asset in the estate?  Did the man leave a last will and testament that is being probated in court? If so, then perhaps the executor of the estate can talk some sense into the beneficiaries.
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Fallen Nov-9 85250.3

"Can GECU withhold distribution of monies if the first beneficiary refuses to pay the loan out of the whole balance and prefers that the loan be paid out of the second beneficiary's half?"

The beneficiary is not obligated to pay the loan; the estate is responsible for the loan.  If the first beneficiary happens to be the person who is administrator/executor of the estate, this person isn't terribly bright.  The lender will not be coughing up the proceeds of the account without the loan being repaid, as it is evidently collateral for repayment of the loan.

"What if the first beneficiary doesn't sign?  Does that mean that the second beneficiary never get's 50% of the distribution?"

You haven't said anything to indicate the daughter and wife are *co*-joint beneficiaries, but that's always possible.  You use words like "first" and "second", which seem to indicate to me that the "second" person is only in the running if the first is dead.

If the wife is a co-beneficiary, she's free to address the nonpayment of the loan in the probate court case.  (That said, you don't say from what funds or assets this loan would be repaid -- the end result may be the same/that no one gets the money from this account.)

If the executor/administrator of the estate is not the daughter or second wife, note that the executor/administrator is the person in charge of the estate and the person who needs to see to it that estate debts are paid.  Unclear in your post who that is or whether, if there's no will, either the daughter or wife has bothered to step up and seek the position of administrator.
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