**Paying down the HELOC and accounting for the loan in his inheritance can be reasonable—if you can comfortably afford the $54,000.** Your concern for his young family makes sense. Your own financial security needs to guide how much help you provide.

I’d approach it this way:

- **Check what savings would remain.** Preserve enough for emergencies, foreseeable expenses, and retirement. Compare the HELOC rate with your savings’ after-tax earnings. If paying it off would leave you stretched, consider a partial payment.
- **Check the HELOC’s repayment deadline.** Interest-only payments leave the principal outstanding. Payments can rise substantially when the repayment period begins, and your home secures the debt. [CFPB guidance](https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-line-of-credit-heloc-en-107/)
- **Have an estate attorney document the arrangement.** Ask them to coordinate the family loan agreement with your will or trust, including how future repayments reduce the inheritance adjustment. Specify what happens if his eventual inheritance is smaller than the unpaid balance.
- **Review taxes before forgiving any debt.** If you’re in the U.S., forgiveness can have gift-tax reporting implications. A tax professional can distinguish paying your bank loan from forgiving his obligation to you. [IRS gift-tax guidance](https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes)

An inheritance adjustment **doesn’t replenish your savings today**. Treat this as money you may need to live without permanently; your estate could shrink through retirement spending or care costs.

You could tell him: “We want to ease the pressure on your family and settle the debt against our house. We’re considering paying it off and having the remaining amount accounted for in your inheritance.”

What’s the HELOC interest rate, roughly how much savings would remain after paying it off, and are you retired?