QUESTION
Can a law firm sue you for your grandparents’ estate delinquent taxes?
Asked on Sep 14th, 2012 on Taxation - Missouri
4 ANSWERS
Probate Attorney serving St. Louis, MO
at
Edward L. Armstrong, P.C.
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Did you actually receive a distribution from either your grandparents' estate or from a trust? If you received a benefit from them which would have been taxable as income and there were no funds in the estate/trust to pay the taxes, you could be liable for some of the taxes. There is a provision in the Internal Revenue Code called "transferee liability." See Section 6901 of the Internal Revenue Code (26 U.S.C. Sec. 6901).
Answered on Sep 19th, 2012 at 6:03 PM
They may be able to file a suit, but most likely cannot win.
Answered on Sep 19th, 2012 at 6:03 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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Perhaps, if there was a wrongful or mistaken distribution. See an attorney.
Answered on Sep 19th, 2012 at 6:03 PM
Tax Attorney serving Portland, OR
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Bullivant Houser Bailey PC
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Generally, the personal representative of the estate can sue for estate taxes to the extent of the taxes attributable to assets received by you but included in the taxable estate. The IRS also can do so to the extent of the value of assets received by you if all the estate taxes were not paid.
Answered on Sep 19th, 2012 at 6:03 PM