I was the co-administrator for my sister's estate in MA. She rented an apartment for years an d had only Social Security income and a little from craft sales. I filed her 1041 in 2006 and later settled an outstanding $6100 credit account with the $3000 remainder of her bank holdings. Now I am informed that I will receive a 1099c form for the settled debt. How can taxes be paid on an estate that's closed? Will I be held liable for this debt with my personal monies?