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Yes. Payment of debts takes priority over other bequests. In most cases, the second requirement of a will says to pay all debts including taxes (the first being to pay for funeral and medical expenses.).

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Q: Can the executor of an estate sell assets of that estate even if those assets have stated beneficiaries if the executor needs cash to pay taxes?
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What is a record of income and expenditures for a particular period?

Net worth. net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time. ...


Do Debits increase assets and increase liabilities?

Debiting an asset account does increase that account, however debiting a liability account decreases the liability. Remember the double entry accounting equation... Assets = Liabilities + Owners Equity (Stockholders Equity) In double entry accounting as I've stated in many other answers, "for every action there must be an equal and opposite reaction". In other words for ever Debit there must be an equal credit. Since Assets INCREASE with a debit, it stands to reason that Liabilities "MUST" decrease with a Debit. Since opposite sides of the equation can not have the same affect. You can not debit an asset and a liability in the same transaction for the exact amount. For example, say you purchase equipment on credit. Your Assets are going to increase, but so is liabilities, because you now "owe" a debt. Assets increase with a debit, you can't have a second debit for the "same" amount in the single transaction, for every debit there is an equal credit (always). Therefore equipment purchase on credit for $500 will increase your asset of equipment (debit) $500 and increase your liability account payable (credit) $500.


What are the four main types of transactions from which transaction exposure arises?

1) Purchasing or selling on credit goods or services when prices are stated in foreign currencies, 2) Borrowing or lending funds when repayment is to be made in a foreign currency, 3) Being a party to an unperformed foreign exchange forward contract, and 4) Otherwise acquiring assets or incurring liabilities denominated in foreign currencies.


Do you owe Sales Tax on labor in Missouri?

Repair labor, if separately stated, is not taxable. Fabrication or production labors are subject to sales tax, even when separately stated.


How do you know what a business's fiscal year is?

The fiscal year is (or should be) stated in a company's charter. If it's incorporated (with stock sold to the public), the fiscal year will be stated in its annual reports to stockholders. Even if not publicly owned, the fiscal year MUST be stated in its tax returns, which ought to be a matter of public record.

Related questions

What is the fee an executor of an estate receives in Massachusetts?

They get paid for reasonable out of pocket expenses as the court may allow. There is no set amount and if it is not stated in the will then the beneficiaries decide the amount. If they can not agree on the fee a judge decides what is reasonable.


Can an executor of a will take an IRA that named two persons as beneficiaries and divide it among 4 different people?

No, not unless directed to by a Court to do so.A person has a right to name -- and to exclude -- who will be beneficiaries. If I have 4 daughters, but only choose two for this role, then that is my stated wishes. The other 2 daughters have to respect what I wanted.No. An IRA with named beneficiaries does not come under the authority of the executor of the estate because it is not a probate asset. The trustee of the account will pay it directly to the named beneficiaries. That is the purpose of naming beneficiaries.


Can the executor sell the house without permission from the beneficiaries if there isn't a will?

That is one of the responsibility of the executor, to liquidate the assets of the estate and divide them according to his/her interpretation of the intention of the will. The executor need not ask permission of any other siblings so long as the results are anything near the original intent of the will. The executor is required to provide a full inventory and accounting to the probate court as part of the final settlement.


What is the difference between an Executor and an Administrator?

An executor handles the estate of a decedent who died with a will. An administrator handles the estate of a decedent who die without a will. The terms are different because an executor is executing the decedent's directions as stated in the will. The administrator is simply handling the estate according to general laws.


Can a bank provide a loan to an estate beneficiary if the will is true to what is stated within?

Yes, but only if ALL of the following are true: * The death is not contested * The will is not contested * Probate debt is clear * Beneficiaries are well defined * Beneficiaries shares are well defined The higher the amount of complexity in the estate and the will, the longer that it will take for the beneficiaries to receive their share of the estate. There are few banks that will take a risk on that complexity until there is a clear ownership of the assets and that will only be made clear during the end of the probate process.


What can heirs of an estate do if the executors refuse to have items appraised as stated in the will?

Return to the court that appointed the executor and petition to have the executor removed and a new one appointed.


Letter for distribution of estate assets?

A letter of distribution of estate assets will likely be a document held by an attorney of a deceased individual. They will have specifically stated who gets their property and valuables in the event of their death.


Can the trustee of a will give items of the estate to non beneficiaries and refuse an interim distribution to the stated beneficiaries?

The trustee under a will MUST distribute the estate according to the provisions in the will. The trustee does NOT have the authority to make gifts to non-beneficiaries unless that power was granted in the testamentary trust. The trustee should be reported to the court that appointed her/him for mishandling their authority and the estate. You should ask the court to appoint a successor trustee.


What is an executer of will?

It means whoever is deemed the executor of said will and/ or estate has now the responsibility and control over disabled/deceased individuals finances, properties, or just anything stated within the individuals will.


What happens if the executor is hiding bank accounts?

They should be reported to the court that made the appointment and they should be prosecuted criminally.What should happen:If it is determined that an executor has been hiding assets the probate court should enter a judgment toRemove the executor from office;Appoint another fiduciary (usually the alternate executor named in the will) to take his/her place;Order the removed executor to turn over all assets, records and other information of the estate to the newly appointed fiduciary within a stated period of time;Order the removed executor to file with the court an accounting of all transactions that the removed executor has made to date;Order that the removed executor forfeit all or some of the commissions due to him for handling the estate.Order any other type of relief that may be just or equitable under the circumstances.


Does the executor have the right to take a third of your inheritance?

No. Executors are compensated by what are called commissions on the corpus of the estate and the income of the estate. The "corpus" is the date of death value of all the decedent's assets. The "income" is interest, dividends, rents, etc, earned by the corpus items after the date of death. Commissions are calculated using percentages stated in each state's laws. I know of no state that fixes a third of the inheritance as the executor's compensation. Check the laws in the state where the will was probated for specific information.


What are the rights of a benificiary to money in a will if they are deceased?

People who are deceased do not inherit money. Many wills indicate alternate beneficiaries, but if there is no stated alternate, then the courts must rule on what happens to the estate.