Question on a deceased parent owing IRS

Previous | Next
 rated by 0 users
Latest post 09-07-2007 7:11 AM by Smurfin. 13 replies.
  • 09-03-2007 3:26 AM

    • Smurfin
      Consumer
    • Top 150 Contributor
    • Joined on 09-28-2003
    • WA
    • Posts 386

    Question [=?] Question on a deceased parent owing IRS

    It seems that the executor of a parent s will recieved a letter from IRS in the name to the parent itself that he/she owes taxes on some money recieved from a civil suit.

    The parent died couple years ago and nothing came up from the IRS back at that time, the only estate was under JTWROS

    The question is:

    Would the executor be responsible for amount owed or could the IRS go back and put a lien on the estate that was JTWROS even if the sole owner changed deed into sole name?

    A Death certificate will be sent to them but not sure what will happen after that.
  • 09-03-2007 5:57 AM In reply to

    Feedback [*=*] re: Question on a deceased parent owing IRS

    “Would the executor be responsible for amount owed or could the IRS go back and put a lien on the estate that was JTWROS even if the sole owner changed deed into sole name?”

    The executor could be liable, more facts are necessary to determine that. The prudent thing for the executor to do is get a clearance letter from the IRS prior to closing the estate. I suggest the executor take the letter to a probate or tax attorney for advice.
  • 09-03-2007 12:09 PM In reply to

    • LdiJ
      Consumer
    • Top 75 Contributor
    • Joined on 02-20-2004
    • Posts 1,007

    re: Question on a deceased parent owing IRS

    It sounds to me like there was no estate, in which case the IRS has nothing to collect against.

    I would recommend responding to the letter with a copy of the death certificate, and then take it from there.
  • 09-04-2007 3:55 AM In reply to

    Feedback [*=*] re: Question on a deceased parent owing IRS

    “It sounds to me like there was no estate, in which case the IRS has nothing to collect against.”

    Not necessarily. Without all the facts, it is impossible to tell. The federal tax lien can attach to assets of the deceased that pass outside of the probate estate, for example.
  • 09-04-2007 1:11 PM In reply to

    • Smurfin
      Consumer
    • Top 150 Contributor
    • Joined on 09-28-2003
    • WA
    • Posts 386

    Feedback [*=*] re: Question on a deceased parent owing IRS

    Not necessarily. Without all the facts, it is impossible to tell. The federal tax lien can attach to assets of the deceased that pass outside of the probate estate, for example. <<

    The parent owned a home as JTWRTS, that home went to other co owner after the parents death.

    Personal items owned were basically clothing, some dishes, nickknacks but nothing of real value.

    There was nothing from the IRS at the time of th death.This Just now shows up, and it seems they may not even know the parent died

    So could/would they go back to the house and put a lien on it? If so could the onwer of the home go after the parents child(ren) for the money?
  • 09-04-2007 7:08 PM In reply to

    • LdiJ
      Consumer
    • Top 75 Contributor
    • Joined on 02-20-2004
    • Posts 1,007

    re: Question on a deceased parent owing IRS

    For all practical intents and purposes the IRS is probably SOL at this point.

    Of course that depends on facts that aren't on the record here...such as whether or not the deed has been transfered to the survivor, for an example.

    How much tax does the IRS say is due?
  • 09-04-2007 8:34 PM In reply to

    • Smurfin
      Consumer
    • Top 150 Contributor
    • Joined on 09-28-2003
    • WA
    • Posts 386

    Feedback [*=*] re: Question on a deceased parent owing IRS

    Of course that depends on facts that aren't on the record here...such as whether or not the deed has been transfered to the survivor, for an example.<<

    I think it was refinanced acouple months after the death. I had heard that one lien was put on from the state

    How much tax does the IRS say is due?<<

    Do not know exact amount but under 2000.00 over 1000.00. I'd have to contact the eecutor to find out exat amount again.
  • 09-05-2007 5:31 AM In reply to

    • LdiJ
      Consumer
    • Top 75 Contributor
    • Joined on 02-20-2004
    • Posts 1,007

    re: Question on a deceased parent owing IRS

    While I would still recommend sending the IRS the death certificate, and advising them that there was no estate, with an amount that low I would probably advise a client not to fight it, and to simply pay it if the IRS doesn't back off at that point.

    There often comes a point where the cost of fighting the IRS, particularly in a case where the outcome could be uncertain, could be greater than the potential savings.

    However, this is also a case where the executor of the estate could not be held personally liable, because the only asset was held in JTWROS, therefore the executor had no control over that asset and no ability to "distribute" that asset.

    Therefore morally, if anyone does end up deciding to pay the taxes and not fight the IRS, it should be the survivor.
  • 09-05-2007 6:14 AM In reply to

    • Smurfin
      Consumer
    • Top 150 Contributor
    • Joined on 09-28-2003
    • WA
    • Posts 386

    Question [=?] New Info

    I'm not sure what it means but it seems that the Proprty taxes owed is still under both names from the JTWROS for 2007.

    Could that mean both names are still on the Estate?

    Thank You also
  • 09-05-2007 5:07 PM In reply to

    • LdiJ
      Consumer
    • Top 75 Contributor
    • Joined on 02-20-2004
    • Posts 1,007

    re: New Info

    You are misunderstanding what an estate is.

    Both names are on the property taxes because the property taxes were directly related to the property, and therefore both owners are liable.

    Income taxes relate to the individual. Therefore, unless they were a married couple filing a joint return, the survivor could not be liable for that person's income taxes.

    An "estate" is the property of a person who has died. The survivor did not die, therefore the survivor is not "on the estate".

    In this case there apparently was no estate, because the only asset (the property) passed outside of the estate, by JTWROS.
  • 09-05-2007 6:15 PM In reply to

    • Smurfin
      Consumer
    • Top 150 Contributor
    • Joined on 09-28-2003
    • WA
    • Posts 386

    Question [=?] re: New Info

    Both names are on the property taxes because the property taxes were directly related to the property, and therefore both owners are liable.<

    I undestand that but one of the owners died 2 years ago. The property goes over to the survivor, but within a few months a lien was put on property from the state.

    You had asked if the deed was changed over to only the one name and i wasnt sure but I seen the property taxes still in both names.Wouldn't the one who died be taken off if the house was refinanced or if the death certificate was sent in? Or would it stay on till the lein is paid up? (I guess that would be better answered in the real estate. )


    The one who did did 2 eras ago.I would think that after the death certificate was sent in the deceased name would be taken off






    In this case there apparently was no estate, because the only asset (the property) passed outside of the estate, by JTWROS.
  • 09-06-2007 7:14 AM In reply to

    • LdiJ
      Consumer
    • Top 75 Contributor
    • Joined on 02-20-2004
    • Posts 1,007

    re: New Info

    That could be an indication that the deed has NOT been changed to just one name, (however you did say that there was a refiance, so that isn't likely), however its more likely that the property tax rolls simply haven't been corrected to reflect that there is just one owner now.
  • 09-06-2007 2:22 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,497

    re: Question on a deceased parent owing IRS

    The state would not lien a property if taxes were owed to Feds! You post is confusing in that regard.

    If X alone owed IRS taxes and X and Y owned a property JWROS then if X died it would pass directly to Y and not thru the estate.

    Most claims against X would need to be presented to X's estate, not Y, Y would take it free of claims just against X.

    But there are some rules beyond me that if IRS had already liened the prperty then the lien is possible to travel with the property and Y needs to address it---a topic best reviewed with tax counsel.
    Often you cannot escape the IRS by merely dying....

    But if X and Y filed joint tax returns and X and Y owed IRS then it remains likley that Y still owes it!



  • 09-07-2007 7:11 AM In reply to

    • Smurfin
      Consumer
    • Top 150 Contributor
    • Joined on 09-28-2003
    • WA
    • Posts 386

    Feedback [*=*] Drew

    The state would not lien a property if taxes were owed to Feds! You post is confusing in that regard.<<

    The lien is from the stae in regards to medicaid

    If X alone owed IRS taxes and X and Y owned a property JWROS then if X died it would pass directly to Y and not thru the estate.<<

    At the time of x death nothing was known about owing the IRS..and I made a mistake it wasn't taxes owed from a Civil suir, it was money recieved from a class action which is where the taxes are owed.

    Most claims against X would need to be presented to X's estate, not Y, Y would take it free of claims just against X.<<

    This new bill was just sent 2 years afer the death that we know of.It came in deceased name with forwarding address from post office. Orignal address was sent to the home deceased owned
Page 1 of 1 (14 items) | RSS

My Community

Community Membership New Users: Search Community