Who is responsible for taxes owed on a deceased assets?
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Who is responsible for taxes owed on a deceased assets?
My father passed away last year. Before he died he cashed out some stock investments and the money went into a joint checking account with his girlfriend. Apparently the executor of my dad’s Will (my dads brother) didn’t hold back enough money to pay my fathers taxes on these cash outs. This checking acct was not part of my dads estate. Only me, my sister and brother were listed as benefactors. We inherited 1/3 each of my dads IRA and any monies that may come in after his death. Legally where should the money come from to pay these taxes? Should the taxes on these cash outs be paid my the person who received the money (i.e.my dad’s girlfriend).
Asked on June 24, 2014 under Estate Planning, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Under the tax laws of all states and federal law, the estate of the decedent is responsible for paying all taxes on the decedent's assets not the beneficiaries. Hence, it is important that the burial expenses and taxes first be paid before assets are distributed.
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