QUESTION
Can the state come after any of the siblings for the back taxes?
Asked on Aug 21st, 2012 on Taxation - Colorado
More details to this question:
My mother passed away recently, now both my parents are deceased. They had special deferred property taxes, since they were seniors and were to pay it back when they sold their home. There is no life insurance, no assets except for about $8,000, which is to be divided among siblings. Since the house is under water, it is going to go into foreclosure. None of the siblings’ names is on the home
2 ANSWERS
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In general, the governmental entity to whom the taxes are owed have a lien against the house.
That tax lien may or may not be paid off during the foreclosure process.
If the taxes are not paid through a foreclosure sale, then it may be possible for the government to pursue your mother's estate, and trace the assets to your siblings.
Your sibling's liability, however, would be limited to the amount of their inheritance.
It is quite likely, however, that the taxes will be paid off during any sale of the foreclosed property.
Answered on Aug 27th, 2012 at 2:32 PM
The State of Colorado would have no claim against the siblings who inherit from their mother for unpaid real estate taxes on her residence. The County would have a priority lien over the mortgage lender, and would collect in the event of a sale of the residence.
Answered on Aug 27th, 2012 at 2:31 PM