Furry <f7p6rt$8l7$1[at]panix2.panix.com> wrote:
- quote -

The IRS could go after each of them for the entire tax bill
until the total it collected matched the bill. Then those
who paid more than their fair share could go after the
others for reimbursement.

Seth

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"cball...[at]tyyni.net" <cball...[at]tyyni.net> wrote:
- quote -

Interesting - would the IRS go after the beneficiaries
proportionately, ie. if the spouse receives 1/4 of the
estate, one child 1/4 and another child 1/2 will the IRS go
after them for that part of the taxes or go after each of
them for the entire tax bill?

Many thanks to everyone who has responded, this is what I
feared but wasn't sure of - now maybe I can convince him to
get an ILIT going...

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"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:

- quote -

If they are not careful (e.g. having the insurance policy
owned by a separate, irrevocable trust), half of the death
benefit may go to pay estate taxes on the other half.

Stu

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Furry <fu...[at]world.std.com> wrote:

- quote -

Transferee liability. See Code section 6324(a)(2).

If the estate tax is not paid when due, then any of the
following who receives, or who has on the date of the
decedent's death, property included in the decedent's gross
estate under Code Sec. 2034 through Code Sec. 2042 (this
includes joint property, which is subject to estate tax
under section 2040), is personally liable for the unpaid
estate tax, to the extent of the value on the date of the
decedent's death of the property received or possessed:

.... spouse
.... transferee
.... trustee, other than the trustee of a qualified employee
trust
.... surviving tenant
.... person in possession of property by reason of the
exercise, nonexercise, or release of a power of
appointment
.... beneficiary

If everyone is cooperative, each of the people that receives
a share of the estate will pony up their fair share of the
estate tax. If not, then the IRS can go after all of them,
or any one of them individually. If they go after the
beneficiaries individually, then it's up the the
beneficiaries to go after the other beneficiaries for
reimbursement.

--Chris

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Furry <furry[at]world.std.com> writes:

- quote -

[snip]

- quote -

The heirs will be on the hook for the taxes.

--
Rich Carreiro rlc-news[at]rlcarr.com

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Furry <furry[at]world.std.com> wrote:

- quote -

The heirs (or joint tenants) can be forced to pay their
shares of the taxes based on the amounts received.

Stu

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"Furry" <furry[at]world.std.com> wrote

- quote -

The heirs owe the tax, and lacking any other sources, may
have to mortgage or sell the property to pay the estate
taxes.

There generally is life insurance purchased to cover this.

--
Paul A. Thomas, CPA
Athens, Georgia

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"Furry" <furry[at]world.std.com> wrote:

- quote -

The heirs pay, through either transferee assessment or the
estate tax lien.

--
Phil Marti
Clarksburg, MD

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Someone close to me owns very large amounts of property,
roughly valued at more than $2 million. Most of it is owned
JTWROS and will therefore pass to his heirs outside of
probate. 100% of their value will still be included in his
estate though, since in creating the JTWROS he gave them
their "half" and they didn't contribute anything. My
question then is this: Let's assume he dies in 2012 or
later, when the estate tax exclusion will probably be
severely reduced. There are going to be some large taxes on
his estate, but most of the property will be in the hands of
his heirs. Essentially the estate won't have any money and
not enough assets to sell to get the money to pay the estate
taxes. What happens at that point?

Many thanks, Bill

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