• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Executor liability

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

J

johnnymack

Guest
What is the name of your state?

Kansas

Final Decree indicates all taxes, trusts, gifts, etc paid. What liability do heirs or executor have if final settlement is wrong and additional taxes may be owed? Errors may have been made by executor.
 


Dandy Don

Senior Member
What type of errors might the executor have made?

Primary responsibility is on the executor to make restitution, but heirs might also have to make restitution, so it is wise to set aside a few hundred or perhaps a few thousand dollars aside, unspent, until a final determination is made on whether any additional taxes are due, and by all means, have the financial matters/estate tax return reviewed by a CPA or tax accountant who has experience in working with estates.
 
J

johnnymack

Guest
Final decree may have contained gross accounting errors mis-representing estate. Also may have failed to establish certain small trusts as required by will.

Final decree says all was right with the world.

Thanks for confirming my thoughts.

Next, what if Executor dies during a review? Can or will the court / IRS go after executor estate for recovery?

This should be law school problem!:
 
Last edited:

Dandy Don

Senior Member
The IRS sure will go after the estate if they think the tax liability is significant--not so sure if they would go to the trouble of collecting a smaller amount if it was a few hundred dollars but they might go after $1,000 or more. Probate court may not necessarily pursue it but maybe the heirs would if they wanted to be reimbursed for monies they may be asked to pay out due to executor's error.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top