taxes after distribution

[mickeyharding]

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Thought I would post in this forum to see if any one could help. See below:


IL

My grandmother died- 2002, with the majority of her estate as POD. So,
the named executor was "not needed".

Excess of the million threshhold of 2002. Fed estate tax paid. State not paid (we didn't know there was such a tax)

One heir now is questioning the state tax as not hers, doesn't want to pay her percentage of penalties. The rest of us are ready to pay. The one sister (who doesn't want to pay), took the tax forms that showed us all as coexecutors (she signed) and ripped it up (about two weeks after she signed; we were still trying to get her to pay). (we still have one signed of three copies). Our accountant said that heirs and coexecs are the same thing since the willed executor was not used....no one was formally named otherwise.

Since we were all heirs, all received money, weren't we all responsible for seeing that the tax forms were filed on time?
Aren't we all liable for the estate tax?
Can we pay and have her billed for her part?
Can we put a lien on her to protect the rest of us?
Can we file the signed state copy and send xeroxes to the fed?
HELP!!!!

mickeyharding

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06-08-2005, 06:49 PM
divgradcurl
Senior Member Join Date: Jul 2002
Location: Bay Area, CA
Posts: 2,334

Quote:
Since we were all heirs, all received money, weren't we all responsible for seeing that the tax forms were filed on time?


Yes.

Quote:
Aren't we all liable for the estate tax?


Yes.

Quote:
Can we pay and have her billed for her part?


No, Each of you is "jointly and severally" liable for the debt. The state wants the whole debt -- they are not going to spend the time to bill each of you seperately. They want one check -- how it gets divvied up amongst the heirs is not the state's problem. If you pay everything but her share, the state could still put liens on ALL of the heirs until the last part is paid up.

Quote:
Can we put a lien on her to protect the rest of us?


No -- but after you pay the tax bill, you could sue the nonpaying heir for her part of the debt.

Quote:
Can we file the signed state copy and send xeroxes to the fed?


?

Your best bet to protect yourselves is to pay off the tax bill, then go after the nonpaying sister to recover her share of the bill.

divgradcurl


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#3 Yesterday, 12:26 PM
mickeyharding
Junior Member Join Date: Jun 2005
Posts: 6



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if you could help more....

we signed forms as coexecutors, tho no one was legally named. This was based on an accountant's advice. 1. Should we sign as heirs?

If one of us did more work than the others, (2)would they be considered a personal representative or does it have to be a legal appointment? and does that give them more liability?

If the three of us said that we would get the taxes done, but then did't on time, (3)is she not liable for the interest?

She is also trying to get us to sign as co-executors, and her as an heir.
(4)Does she have such a standing and if so, less liability? (she did file a couple of the insurance pod forms with ins cos. so we could collect; that makes me think she "participated" and also has equal standing as a representative or administrator)

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[LdiJ]

Originally Posted by mickeyharding

--------------------------------------------------------------------------
Thought I would post in this forum to see if any one could help. See below:


IL

My grandmother died- 2002, with the majority of her estate as POD. So,
the named executor was "not needed".

Excess of the million threshhold of 2002. Fed estate tax paid. State not paid (we didn't know there was such a tax)

One heir now is questioning the state tax as not hers, doesn't want to pay her percentage of penalties. The rest of us are ready to pay. The one sister (who doesn't want to pay), took the tax forms that showed us all as coexecutors (she signed) and ripped it up (about two weeks after she signed; we were still trying to get her to pay). (we still have one signed of three copies). Our accountant said that heirs and coexecs are the same thing since the willed executor was not used....no one was formally named otherwise.

Since we were all heirs, all received money, weren't we all responsible for seeing that the tax forms were filed on time?
Aren't we all liable for the estate tax?
Can we pay and have her billed for her part?
Can we put a lien on her to protect the rest of us?
Can we file the signed state copy and send xeroxes to the fed?
HELP!!!!

mickeyharding

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06-08-2005, 06:49 PM
divgradcurl
Senior Member Join Date: Jul 2002
Location: Bay Area, CA
Posts: 2,334

Quote:
Since we were all heirs, all received money, weren't we all responsible for seeing that the tax forms were filed on time?


Yes.

Quote:
Aren't we all liable for the estate tax?


Yes.

Quote:
Can we pay and have her billed for her part?


No, Each of you is "jointly and severally" liable for the debt. The state wants the whole debt -- they are not going to spend the time to bill each of you seperately. They want one check -- how it gets divvied up amongst the heirs is not the state's problem. If you pay everything but her share, the state could still put liens on ALL of the heirs until the last part is paid up.

Quote:
Can we put a lien on her to protect the rest of us?


No -- but after you pay the tax bill, you could sue the nonpaying heir for her part of the debt.

Quote:
Can we file the signed state copy and send xeroxes to the fed?


?

Your best bet to protect yourselves is to pay off the tax bill, then go after the nonpaying sister to recover her share of the bill.

divgradcurl


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#3 Yesterday, 12:26 PM
mickeyharding
Junior Member Join Date: Jun 2005
Posts: 6



--------------------------------------------------------------------------------

if you could help more....

we signed forms as coexecutors, tho no one was legally named. This was based on an accountant's advice. 1. Should we sign as heirs?

If one of us did more work than the others, (2)would they be considered a personal representative or does it have to be a legal appointment? and does that give them more liability?

If the three of us said that we would get the taxes done, but then did't on time, (3)is she not liable for the interest?

She is also trying to get us to sign as co-executors, and her as an heir.
(4)Does she have such a standing and if so, less liability? (she did file a couple of the insurance pod forms with ins cos. so we could collect; that makes me think she "participated" and also has equal standing as a representative or administrator)

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Just pay the taxes and sue her for her fair share. Has she already blown her share of the inheritance?...is that the problem?

[mickeyharding]

She might have. She has had several financial problems in the past. We are not close, and I don't know her situation, nor do my other siblings. All we know is that it seems like she is avoiding the payment, the signature and any responsibility.
-We think if we pay, we will never see a dime from her.
-We also think that if we allow her not to sign, or sign with a different title, she will be absolved of any legal responsibility with respect to the estate, taxes, tax forms, etc.
The rest of us want to split the burden evenly (even though two of us have gotten more than the others).
-Is the responsibility issue really a non-issue? It seems like whoever signs the forms then carries that entire burden (which could even be payment, couldn't it?)

[mickeyharding]

any ideas out there? Thanks!!!!