How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11390
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I am the administator of my fathers estate and just found

Customer Question

I am the administator of my fathers estate and just found out that they took his property for back taxes (my brother had the taxes) but there is a loan on this property that I have been paying until we can sell it. I had to get a "bond" to be the administrator. If I don't redeem the taxes, will I be responsible for the loan?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

I hold a JD (Juris Doctorate, a doctoral degree in the law),concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Stetson School of Business and Economics, as well as CFP and CRPS designations.

I can help here

...

No, you'll generally only be be responsible for the debt if you:

  • co-signed the obligation;
  • live in a community property state, such as California;
  • are the deceased person's spouse and state law requires you to pay a particular type of debt, like some health care expenses; or
  • were legally responsible for resolving the estate and didn't comply with certain state probate laws.
Expert:  Lane replied 1 year ago.

Can you tell me a little more about what you mean by "my brother had the taxes?"

...

Also, likely the only way you would jeopardize your waiver of PERSONAL responsibility is if there WERE dollars in the estate to pay the taxes.

...

But NO, you do not have to pay this loan with PERSONAL funds

Customer: replied 1 year ago.
My brother lives in the area and knew when the taxes were due and I asked him about them and he never told me. Instead he changed the mailing address at the county office to go to his address. My father also had a home that nothing has been attached to. The only person to contest any debt owed to the estate was the bank in question. will they take that house for default?
Expert:  Lane replied 1 year ago.

In WV, the appointed rep once bonded is responsible to (1) gather the estate, (2) pay any debts against the estate, and (3) distribute it to the proper heirs or beneficiaries.

...

Under WV law, as part of this process, the personal representative must search for creditors who may have claims against the estate and notify them of the probate proceedings.

...

It may also be necessary for the personal representative to sell items in the estate to pay debts the deceased person owed.

...

A personal representative must also give notice of the proceedings to the surviving spouse, any beneficiaries named in the will (if any) or heirs if there is not a will.

...

West Virginia also requires the personal representative to provide an appraisal of the value of the estate and file the appropriate tax documents based on that appraisal.

Expert:  Lane replied 1 year ago.

Sorry looks like we crossed there ... let me read

Expert:  Lane replied 1 year ago.

Yes, they could ... As you see from what I just looked up, the process is that you sell what you need to settle the valid debts

Expert:  Lane replied 1 year ago.

Sorry in WHOSE name was the loan? (Also was the house that you mention the one that secured that loan?)

Customer: replied 1 year ago.
loan was in my fathers name only. there are two houses
Expert:  Lane replied 1 year ago.

And the loan was on the property that the county seized for property taxes?

Expert:  Lane replied 1 year ago.

And the loan was on the property that the county seized for property taxes?

Customer: replied 1 year ago.
Expert:  Lane replied 1 year ago.

The the mortgage company will be in line next to get what they can after the taxes have been paid, from the sale of the house.

...

But you PERSONALLY are not responsibly s long as you do everything by the book ... essentially, here, meaning communicate with the mortgagor and sell whatever assets you have to to satisfy the debts of the estate.

Expert:  Lane replied 1 year ago.

Bot***** *****ne, if there is not enough money in the estate to pay all of those debts, the unpaid creditors are out of luck.

...

Was there Life insurance or annuities or anything like that, TOD or POD accounts (all of these having a beneficiary designation and NOT being a part of the estate)

...

If so THOSE do not have to be used to satisfy debt of the estate, those by-pass probate

Expert:  Lane replied 1 year ago.

Still with me?

Expert:  Lane replied 1 year ago.

Ok, I still don't see you coming back into the chat here, so let me recap.

...

(1) to your first question, no you are not PERSONALLY responsible ... but you must keep the Estate assets and your assets separate (as you likely know, the bond is for the full value of the estate)

...

(2) The bank CAN take what's left of the proceeds of the sale of the home at tax sale, and

...

(3) Any remaining debt should be paid from the assets of the estate

...

(4) Certain assets pass outside of the probate estate

...

Hope this helps

...

I hope you'll rate me positively, using the stars on your screen … (that's the only way we get credit for the work here) … based on thoroughness and accuracy, rather than any good news/bad news content ... Hopefully, havingall the facts will help you "see around some corners."

...

Lane

..

Customer: replied 1 year ago.
no- I paid bills with the $300 left in his account and i was POD on that account anyway. I deposited money after his death to pay bills into that account.
Customer: replied 1 year ago.
are you still there??
Expert:  Lane replied 1 year ago.

You really didn't need to use the POD money ... that's OUTSIDE the probate estate

...

Yes, sorry, though you had left

Expert:  Lane replied 1 year ago.

(better said ... the money left to you as payee on the POD was outside the estate) ... I would have used an account opened in te estate's name

...

HOWEVER all that really matters is that you account for things properly and treat estate assets and liabilities separately from anything personal

Expert:  Lane replied 1 year ago.

Other questions? (Have I missed anything?)