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1. Dear Alex, your Dad's quarter share in your grandfather's estate would only go automatically to his children to be divided equally or per stirpes between them if your father had died before your grandfather. Here, as your father survived your grandfather, it will be your father's will, if he left one, or else the rules of intestacy, which will govern how the quarter share will devolve. Here, as your father survived your grandfather, he inherits the quarter share. It makes no difference that your father died before your grandfather's estate was settled. He still inherited the quarter share.
2. So, the quarter share of your grandfather's estate will fall to be dealt with by the will of your father, or else, if he left no will, by the rules of intestacy. The quarter share of your grandfather's estate is legally your father's money, not the money of yourself and your siblings. You only have rights then to your father's share under his will or else by intestacy.
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4. Dear Alex, I regret to say that any debts owed by your father at the time of his death will have to be paid out of his estate, which will include the quarter share in your grandfather's estate, in priority to the assets passing to the beneficiaries of his estate.
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