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 Christopher B, Esq Your Own Question
Christopher B, Esq
Christopher B, Esq, Attorney
Category: Estate Law
Satisfied Customers: 2982
Experience:  Litigation Attorney with education focus on estate planning and tax
Type Your Estate Law Question Here...
Christopher B, Esq is online now
A new question is answered every 9 seconds

My brother died two years ago (26 Jun 13) in Kentucky. I am

Customer Question

My brother died two years ago (26 Jun 13) in Kentucky. I am his sister I live in Charleston, SC and I am the administor of his estate. I went to probate court in Louisville, KY on 08 Jun 15. I received a check from his account for $17,047.38. Funeral expenses
came to $18,479.89. Do I need to pay taxes on his money prior to reimbursing my brother, mother and myself for the cost of the funeral. We paid for the funeral. He has no real estate, a car valued at $1,600 no spouse or children. Thank-you
Submitted: 2 years ago.
Category: Estate Law
Expert:  Christopher B, Esq replied 2 years ago.
Did you brother have a job or any other income coming in for this calender year
Expert:  Christopher B, Esq replied 2 years ago.
My name is***** and I will be helping you with your question today. This answer is for informational purposes only and does not create an attorney-client relationship.
If your brother did have income for this year you will need to pay state and federal income taxes (Federal income tax return -Form 1040 and Kentucky income tax return - Form 740) if any are in fact due. (07-09-2012)
Insolvencies and Decedents' Estates Overview
(2)In the case of an insolvency, the IRS may be entitled to payment of federal taxes ahead of other creditors under the Federal Priority Statute, 31 USC § 3713(a). If a fiduciary pays other claimants ahead of the IRS in violation of the Federal Priority Statute, then the fiduciary might be personally liable under 31 USC § 3713(b). (07-09-2012)
Other Exceptions
The Service may, in limited circumstances, cede priority for purposes of funding claims for family allowances, funeral expenses, or administrative expenses, even though debts to the Government technically have priority over these claims.
I don't know what type of situation your brother was in with taxes but if there were outstanding debts to the IRS then you will need to ascertain if the IRS will waive those in favor of paying for the funeral costs even if Kentucky state law provides that money due in taxes has a lower priority.
During the probate process of settling an estate in Kentucky, the law gives preference to what the statutes term "preferred creditors." In order of preference, these include the expenses associated with settling the estate (administrative expenses), the expenses due to the provider of funeral services, debts and tax bills due under government regulations, and any other creditors' claims. As outlined in KRS 395.455, if a family member pays one of the preferred claims, the relative can petition the court to be classified as a preferred creditor and be reimbursed for the amount of the preferred claim.
You will need to Petition the court to become a "preferred creditor" and each family member should be able be reimbursed for the funeral costs paid.
Read more :
Please see link for help regarding Kentucky probate for self represented:;_ylu=X3oDMTEzMTNzdmg4BGNvbG8DZ3ExBHBvcwMxBHZ0aWQDRkZHRUMwXzEEc2VjA3Ny/RV=2/RE=1435095859/RO=10/
Please let me know if you have any further questions or require any additional guidance. Please do not forget to positively rate my answer as this is the only way that I am compensated for my work.
Expert:  Christopher B, Esq replied 2 years ago.
I see you have reviewed my answer. Do you have any further questions? Please positively rate my answer as it is the only way I am compensated for my time.

Related Estate Law Questions