A family investment company is established by way of a loan from X. It is a simple debt, interest free, repayable on demand. X dies with all or part of the loan still outstanding and his Will provides for his estate to be divided between his 3 children. There is no express provision in the Will regarding the debt.
The executors/children do not wish to call in the loan immediately, but the children would each like to own 1/3rd of the debt and be able to decide in the future
when to draw down from their own share. I understand that legal (as opposed to beneficial) ownership of the debt cannot be split, and I wondered whether any contributors have come across this situation and if so, how they dealt with it?