Do I have to worry about IRS and California Tax Leins if I inherit money from a sold house?
My father died in December, we (my brother, sister, and I) are going to start probate this February. I have approx. $100K in tax liens from both the IRS and California. When we sell the house, we will each get 1/3 of the money, do I have to worry about the tax liens? Will I see the money, or will they take it from me?
Please help!
,,No money to pay to IRS? Don’t worry! ,I filed for 1040X because I filed the wrong forms but now IRS owes me money, should I worry about penalties? ,How can my mom protect herself from wage garnishment? ,Does a homeowner owe back taxes if it is discovered a tax statement on a house is in error? ,How long does it take on average for the IRS to say ok to the sale of a house with a tax lien? ,Tags: About, California, from, house, inherit, Leins, Money, sold, worry
Comments (6)
Yes you do and yes they will. You might see it but not for long.
the irs and state will take the house and you and your siblings wont get anything. that’s what happened to my step son when his biological father died. the state only cared on how much they were going to get paid back and didn’t try to sell the house for more then what was owed.
no worries. You won’t get a dime. Your funds will pay off the liens. Period.
IRS liens are “Super” in priority. Uncle gets paid first. Then Ahnold; and if there is anything left, you.
Yes the government want their money.
Your 1/3 portion will go to pay your tax liens. What you owe to the IRS will have no effect on your brother and sister’s share of the estate. They will receive their shares while you will only receive any amount that is over what is owed by you to pay your liens.
Tax liens get paid first, but I believe they can be paid out of probate and escrow from the proceeds of the sale of the property. Unless the house had a mortgage, or is in a very poor part of California, it is likely that there will be a substantial amount of money remaining after the sale and payment of the liens. That will be divided evenly among the siblings.