Parents Federal Tax Debt After Death...

[mmotl1]

WI/NV/MN

If my parents have a large IRS Personal Income Tax Debt (unpaid taxes), will their children be held responsible for that debt after they die? What if there is no real value to their "estate"?

 

[LdiJ]

WI/NV/MN

If my parents have a large IRS Personal Income Tax Debt (unpaid taxes), will their children be held responsible for that debt after they die? What if there is no real value to their "estate"?

Their estate would be responsible for the unpaid taxes, but their children WILL NOT be responsible. If the estate does not have enough assets to pay off their debt, then the IRS is SOL.

However, any creative planning to make it seem as though there are no assets in the estate, when there really are, will likely backfire.

 

[mmotl1]

Their estate would be responsible for the unpaid taxes, but their children WILL NOT be responsible. If the estate does not have enough assets to pay off their debt, then the IRS is SOL.

However, any creative planning to make it seem as though there are no assets in the estate, when there really are, will likely backfire.

Thank you for the information. There really is no estate... they own nothing, lifetime renters, older cars worth less than $2000 each. I just wanted to know if the IRS would come after me or my brother for their back taxes... I feel much better now. Thanks.