Can the executor of estate be held liable for taxes owed if estate is solvent?
The executor is responsible for paying any debts, including
taxes, owed by the decedent before any assets can be distributed.
If the debts are not paid and assets are distributed the executor
can be held personally responsible.
The executor is not personally responsible for the debts. However if they misuse the funds they can be held liable.
No, the executor is not personally responsible. It is their duty to value the estate, resolves debts based on the assets. If there is not enough money, it is reported to the court with the distribution plan and some people do not get paid.
They are not personally responsible. However, they could be held liable for violation of fiduciary duties.
The executor of an estate uses the assets of the estate to pay any taxes or other debts owed by that estate. If it should turn out that the taxes owed exceed the value of the estate, then the executor pays as much as the estate consists of, after which there is no longer an estate.
The estate is responsible for paying all taxes. The executor is responsible for making sure that the estate does so.
Inheritance Tax is paid by the deceased individual's estate. To the degree that an estate's assets are reduced by the payment of inheritance taxes it can be said that heirs "pay" the tax but they are not liable for payment of the tax. An executor/executrix is responsible for determining if taxes are owed, for filing the appropriate tax returns and for making the necessary tax payments. An executor/executix is personally liable should taxes that are… Read More
Can a town sue an executor of an estate for back taxes if the estate already settled if so how long do they have to make a claim?
Yes, they can sue the executor. They breached their duty if they did not resolve the taxes before closing the estate.
If there is an estate, there are tax forms to be submitted. They may not result in any estate taxes, but they have to be filled out and sent in. That is one of the responsibilities of the executor.
The fee paid to the executor is considered taxable income.
That will depend on the value of the estate. The executor will have to file a tax return with the IRS for the estate.
Can executor use monies from decedent's estate to pay property taxesinsurance on a residence jointly owned by some but not all of the heirs to the estate without prior consent of the heirs?
Assuming that the decedent's Will does not provide otherwise, and assuming that the decedent was liable for the taxes and insurance, or assuming that the residence is included in the decedent's estate, then yes.
The executor is responsible for the assets of the estate. That would include taking care of the property taxes, upkeep and maintenance. The executor is not personally responsible for the bills, the estate is.
Yes, the executor must file taxes. That is one of their responsibilities to the estate.
Where I live the executor of your estate will have to file your Federal taxes after you die.
If the property is in the estate, the estate is responsible for them. You are entitled to be reimbursed if you have paid them for the estate. Submit your claim to the executor.
The Executor is required to administer the estate according to the terms of the will. He is required to contact the beneficiaries and supply them with a copy of the will. Further, the executor is required to handle all claims against the estate, secure all property, and pays any debts the estate may have, including taxes.
In most cases that will be a responsibility of the estate. The executor is supposed to file taxes for the deceased and the estate.
The court appoiunted executor has control over the estate in order to pay taxes and debts and distribute the remaining property according to the will. The estate does not become their own property unless they are the sole beneficiary.
It will depend on the laws in their jurisdiction. Most have an expiration date associated with them. The executor can apply for an extension and will have to submit annual accounting, as well as pay taxes on the estate.
That is one of the responsibilities of the Executor. The IRS and state provide the guidelines and forms to be filled out. It is pretty straight forward, and in many cases there are no estate taxes.
Once the taxes are paid and the estate closed they are done. Most of the time the court will issue the order closing the estate.
What if a person dies in Feb 08 owing the IRS taxes for 07 but was separated from his spouse by the end of the fiscal year 07 - is the spouse liable for the IRS debt?
If the spouse inherited the estate, the spouse will pay the IRS debt. Since the two were still married, the taxes must be paid by the remaining spouse. If they were separated at the end of 2007 I assume that they did not file a joint return for the 2007 taxes. If this is the case, the husband's estate must pay the taxes. If the estate cannot pay the taxes in full, then the spouse… Read More
Yes, if it is to the benefit of the estate, for instance such thing as maintaining the estate, utilities for property, property taxes, etc.
Yes, the executor may sell estate property. The beneficiaries do not have to be consulted. The money would be used to pay debts and taxes before distribution.
Typically the beneficiary of the life estate will be liable to pay the taxes on it and you can read more about this when you click which has been added for you below this answer.
That is the responsibility of the executor. They will have a letter of authority issued by the court that allows them to do so.
Not if they are reimbursed from the estate. If not, they may be eligible to be credited against the inheritance income.
The individual does not file a tax return, but the estate is required to. That is the responsibility of the executor. They file on behalf of the individual and the estate.
The executor will have to fill out the Federal tax forms. They will determine what the taxes are. In order to do so, the estate will have to be valued.
There is no reason that the executor cannot lease estate property. As long as they get a fair market price for the lease. They would then be able to use the money to pay debts and taxes as well as maintain the property.
Can an executor of an estate remove heirs from a property that is designated to be sold in the will if those heirs have paid the property taxes?
They have a claim for the amount of the taxes against the estate. Yes, the executor can remove heirs from the property. They have a duty to preserve and sell the property.
Your question is troublesome. An executor must be appointed by the probate court. The executor has the duty, power and authority to settle the estate under the supervision of that court. If you are the duly appointed executor it is YOUR responsibility to pay any estate taxes that are due. In fact, the debts of the decedent must be paid before any assets are distributed to the heirs. Therefore, the heir you speak of shouldn't… Read More
They are not personally responsible for the debt or taxes. The estate has to pay off these claims. If the estate cannot, they distribute as best they can. If the court approves the distribution, the debts are ended.
Briefly, the duties of an executor are as follows: Submit the will to the probate court Collect the decedent's assets Pay the decedent's and estate's bills and debts, including funeral expenses Pay taxes, including estate taxes and outstanding income or property taxes Manage the assets of the estate Pay any invoices associated with administering the estate, such as bills from appraisers, accountants and brokers Distribute the estate's assets according to the will
They cannot take money out of the estate for your debts. However, they can place a lien on your inheritance from the estate. When the estate is distributed, your share could be taken.
In Massachusetts has no specific time frame. The estate has to be inventoried and appraised, the debts collected, taxes paid and the terms of the will meet.
When you die leaving your estate to your children they are liable to pay the tax or mortgage etc and if the property is then rented to another by your children they are still liable for the taxes on that property and not the tennant as they pay the rent to the children for the privelidge of having full use of the property but the property remains under the ownership of your children and it… Read More
One of the most important jobs of the executor is to list all the assets and their values. It is critical in order to liquidate the estate and resolve taxes.
An Executor is charged with the responsibility of over seeing the settlement of the Estate of the deceased. Working with the Estate lawyer and the beneficiaries the Executor ensures the wishes of the Deceased are carried out and that the Estate is protected from any wrongful claims against it. This can involve compiling paperwork and asset lists, property holdings and chasing down other funds payable to the Estate. In some places the Executor carries a… Read More
The executor is required to fulfill the requirements of the will. If there is no will, they need to follow the state's rules for intestacy. The executor is entitled to compensation. They are also responsible for a full inventory of the estate, paying the taxes and filling the appropriate information with the court.
Petition the court to open an estate. You can also petition to be the executor. You will then settle all debts, value the estate, pay the appropriate taxes and distribute the remainder.
In Colorado when a person dies with no will and the next living relative is a uncle what are the proceedings?
The estate will have to go through probate, which means the court will appoint an executor for the estate and the executor will carry out the wishes of the deceased to the best of his abilities. Abiding state and local laws and taxes
To inventory the estate, pay off the debts and taxes of the estate from the assets and execute the will. Complete records and accounting must be kept and submitted to the court.
Pass it to the Executor of the estate. It has to be paid, if there is enough money in the estate, before making any bequests.
So that you can pay taxes for the estate. It allows the IRS and state entities to insure the proper taxes are collected. It also allows the executor to open bank accounts and keep them isolated from personal assets.
You are not personally responsible for them, they will be paid from her estate. It is your responsibility to see that is done.
Your brother is the Executor of our father's estate The law firm where his wife is a paralegal is handling the estate is this a conflict of interest?
No, as Executor it is your brothers responsibility to settle your fathers taxes, funeral expenses and taxes. He then needs to divide up the remains of the estate as set out in your father's will. If he needs help from a law firm to do this then the law firm will need to be paid (out of the estate) before the heirs inherit. As executor your brother can use any law firm he chooses to… Read More
They are a cost to the estate and typically are a deduction from taxes or the total amount. Yes, they will reduce the estate tax. Consulting a CPA or tax attorney would be a good idea!
An executor is the e person who is responsible for settling the details of a deceased person's estate. There can be a single executor or one or more people charged with this job. An executor can be related to the deceased person, can be a friend or a lawyer, accountant, or other professional. The main requirement is that the person chosen as executor be at least 18 years old and have not been convicted of… Read More
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?
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.).
The executor of the estate will pay off the bills and taxes and send you what ever it is that was left to you, whether it was specific items or money.