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If you transfer your house to a Trust, is it sheltered from any tax liens by the IRS?

New York, NY |
Filed under: Tax lien

My husband retired in 2010 and received a substantial amount of money. He has since withdrawn most of the funds, as well as received an inheritance in 2012. He has not filed any taxes in 3 years. I have filed separately since 2010. We are both on the deed to the house and I do not want the IRS putting a lien on it due to his tax problems.

Does the IRS give you any notification prior to seizing checking/bank accounts?

Attorney Answers 3

Posted

The short answer is no - it is almost impossible to do planning that will defeat the IRS from collecting taxes that are already due.

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Asker

Posted

If I sell or transfer the house to my 22 year old son, would that prevent any liens?

Gregory Herman-Giddens

Gregory Herman-Giddens

Posted

No, that would be considered a fraudulent transfer.

Posted

Attorney Herman-Giddens is correct. I would strongly urge you to retain an experienced tax attorney to help you clean up your husband's issues. Good luck to you.

This information is presented as a public service. It should not be construed to be formal legal advice nor considered to be the formation of a lawyer/client relationship. I am licensed in Connecticut and New York and my answers are based upon the law in those jurisdictions. My answer to any specific question would likely be different if I were to review a client's file and have the opportunity to interview the client. Accordingly, I strongly urge you to retain an attorney in your jurisdiction with respect to any legal matter.

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Posted

A lien can be filed against him and would attach to his property, including the home since he is on the deed. Because you filed married filing separately, only his share of the equity in the home would be in jeopardy. Any attempt to transfer the home may result in the IRS viewing this as a dissipated asset and could impede any potential collection alternative he may have available to him. He definitely needs the assistance of a tax professional to resolve this issue.

info@cttaxhelp.com Office number: (860) 255-7423 Website: www.cttaxhelp.com. Our reply to your question has not created an attorney-client relationship. It should not be considered legal advice. You should contact an Attorney who can give you legal advice after acquainting themselves with the specifics of your case.

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Posted

Thank you for your response, however are you certain they can only put a lien on the home for his share of the equity? In essence, I could potentially buy him out of half the house and then they couldn't put a lien on it.

Linda Simmons Campbell

Linda Simmons Campbell

Posted

I do not have enough information to tell you whether buying his half is an appropriate solution for you. This is a complex issue and as I mentioned previously, if he transfers the asset to you there are situations in which it would become a dissipated asset. This could inhibit his ability to reach a collection alternative and in some cases, the IRS may make him reverse the transfer. I would not recommend doing anything with the property until you have spoken with an Attorney. Unfortunately this is not an issue that can be covered thoroughly in this forum. As for the lien, it attaches to the entire house. If the IRS seeks to enforce the lien and foreclose on the home, they are only entitled to his share of the equity. > > > > Links: > ------ > [1] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfb179dc6b4dd819efb3785da174f5e4d91efbcdd50c6b7612ecfa084a76177f0e > [2] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf5b9be3afd1b4155086df636973b6bf5a12cc63dc4160fb306727e99f2fd8a23c > [3] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf6c5a06050a1783d934dea243ef718ca53e9e19fd9a09e842a8b99da73e16f417 > [4] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfecf4959db7674344ad3e1478fc22052349801f79faafe8f8f82b811648846fca > [5] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfcaaa0cd28994b39fab7b014bc1cb6a16cedebf33027d6d985953f01b48760448 > [6] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfa2272c6ccd5edfb3d8cfdc0dc68647b60a7aa03d968893133e33442a7a085acb > [7] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf6dd9b4a5113d26cb0d108edd5837b714a696376f6b9ad328229be72e97e283f9 > [8] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf5d40c40da9b07656c3623a6d69afe32de04cfc9b28c1d7b9e347ac024266d1e3 > [9] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfb166204dc89329917843c3b9b28d3104219b773f011c31901711327c4e65bde3 > [10] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfe9708c57837fac40ed505ecdc98aae610c76e518dc78256962629e10fffcc21b > [11] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf93bb47ba6b08753b4ffda53bb37b53f57d215678b918f67b9b746e53e80e86f3 > [12] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bffc3d85b258c5364371aa43e7e8021c1081fc1fe4e5dc24a7a17c2ac4a6951afa > [13] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf20649a9cada9eb1ad21d4de1f230945533f7351293e50ee93ca79af4abb46769 > [14] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf675aeb60934893ba36f8f50fa06a0a64862eedf60df906cc89948bf70a011335 > [15] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf729fec23882b804cfa75a882dd102df98f48924dfbf06afa681ec15890c874ab > [16] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfc9ebd1de39a511e770c2a55dcb3d410c5cc34670112fa5f8c6ce7ecb3db907f5 > [17] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf286392f6b818803669ef373618c0a20f4c1ecb95ad247281d122acf53b545854 > [18] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf2c1c8c25b88b4c49d254f8a637d46b3e57c61cc6c34d7cff0bf35f593cf2d1b7 > [19] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf3562baf70ea764e02899f4b6804b5d766602a52018d6ae72d26769fb4ddb2480 > [20] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bf31e1538ad61d74215e94df1af869973e1507dd7e1093ae60b9fcabde6961a5fa > [21] > http://click.mail5.avvo.com/?qs=4e58384fb39d59bfdbb43951ad67799237fd03b0404de9b47f22109c8130cefe8fe704645858e1d2 -- Sincerely, Linda S. Campbell Campbell Law Offices, LLC 4 Deer Avenue Burlington, CT 06013 (860) 255-7423 NOTICE: This email and any attachments are CONFIDENTIAL. The contents are protected by various legal privileges which include the attorney client privilege and work product privilege. Other privileges may also apply. The contents of this email and any attachments are intended SOLELY for the designated recipients as identified by name in "To" or "CC" line of this email. If you are not designated as a recipient by name, DELETE the email and attachment from your Inbox IMMEDIATELY. Y

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