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Can I be forced to pay off an IRS lean on an estate when I don't want the inheritance?

Denver, CO |

I was estranged from my father and he passed last year. He had a small business wound down for his retirement. There is an IRS lien >= the value of the business. I want no part of any of it and am satisfied with liquidation to settle the lien. My older sister wants the business and requested a carte blanche release of my claim. I agreed but requested information and for her to prepare an appropriate document that protected my from liability which I would sign. She refused both and has refused to send me any details on the estate or business. The other siblings released their claims. She is now threatening me with half of the IRS bill. What is my exposure and risk? The estate and sister are on the East Coast.

Thank you for your replies. As I stated, I have no, none, zero documents from probate or anywhere else. All of my requests have been ignored despite specific requests. Is asserting my claim and forcing liquidation a possibility?

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Attorney answers 4


Is there a probate? You would only be liable up to the value of the distribution you receive from the estate. If you do not want anything, the best alternative is a qualified disclaimer of all rights in the estate. That, however, is a matter of timing, it may be too late. You need to meet with a probate attorney and go over all the documents you have and whatever documents you have from the Probate.

If this is a trust, you will need to object to any distributions until the IRS issue is paid off.

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Attorney Shultz is correct. Your best move is to retain an attorney who can review the existing documents and advise you as to the necessary steps to protect yourself. Good luck to you.

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I agree with my collegues...there is information missing. However, you are not liable for your father's debts, including for taxes. If you recieved distributions, however, you may be liable to the extent of those distributions. Visiting with counsel may help you sleep at night. Good luck!

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I agree with my colleagues. You are not liable for a distribution that you have not received. Your sister cannot bully you into it. Of course, if she distributes half the business to you, then you could be liable to the extent of what you receive. I would think that a qualified disclaimer should adequately protect your interests.

James Frederick

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