Father owed IRS $50,000. What monies are considered part of the estate?

Asked over 1 year ago - Two Rivers, WI

My dad passed owing IRS $50000. He was in the Army for 20 yrs and worked for the DOD when he died. I will be receiving $43000 in life insurance, $3000 for unused sick and vacation, an unknown amount from his FERS retirement account, $1300 in a Thrift Savings Plan, and a lump sum for premiums paid into his Survivor Benefit Plan. He had no beneficiaries listed so it is split between me and my brother due to the order of precedence. I know the IRS can't touch the life insurance but not sure about the rest. I try to talk to them but keep getting transfered to other people who tell me to send it all in. Does this money go to us or to his estate? He had no will and only $3400 in his bank account. Looking for advice before I retain a lawyer.

Attorney answers (4)

  1. Nick Passe

    Contributor Level 15

    3

    Lawyers agree

    Answered . It sounds like the life insurance money should be yours. The rest of it sounds like it will probably go to the IRS and/or any other creditors. You could hire an attorney to investigate the matter and this may or may not turn out to be a good investment.

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    Attorney Nicholas J. Passe

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  2. Rani Kay Sampson

    Contributor Level 10

    3

    Lawyers agree

    Answered . Except for the life insurance, most or all of that money belongs to the estate. Since you'll be getting a windfall from the life insurance, consider spending a little of it talking to a lawyer. It's very likely you'll decide to take the insurance money (and probably the survivor's benefits) and do nothing else. The heirs of the estate aren't liable for the decedent's debts. You're not required to probate his assets. Unless there are other assets, there may be no reason for you to open probate.

    Rani K. Sampson (509) 663-5588 is a Washington attorney whose clients ask her to solve problems and negotiate... more
  3. Arthur Harold Geffen

    Pro

    Contributor Level 17

    3

    Lawyers agree

    Answered . I agree with Ms. Sampson and think you should spend a little money and talk to a local attorney.

    Hope this helps. If you think this post was helpful, please check the answer was a good answer tab below. Thanks.... more
  4. Wilson Alexander Smith

    Contributor Level 4

    1

    Lawyer agrees

    Answered . It depends on the state. In Ohio, creditors can only touch assets that go through Probate Court. Things like life insurance that name beneficiaries do not go through Court. It all depends on if there is s named beneficiary or not.

    Please remember that I have provided general legal advice and have not agreed to represent you in this matter.

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