QUESTION
Who pays the inheritance taxes owed by beneficiaries?
Asked on Feb 15th, 2019 on Wills and Probate - Kentucky
More details to this question:
My brother passed away last August. He left the family farm, which he solely owned. In his will he left it to me and my 2 sisters. Since our other brother had passed away 3 years earlier, he left it to his widow, our sister in law also. Since she is a Class C beneficiary she owes inheritance taxes. The estate attorney is saying that since the will states all estate, inheritance transfer taxes ect is to be paid out of the estate, which is only real estate and not money, he says we have to pay her inheritance tax, which she cannot afford. He says she can force the sale of the property. Or he says we have to sale something off the farm to come up with the money for her. Is this true? I would appreciate any insight to this matter. Thank you.
2 ANSWERS
Aged and Aging Attorney serving Newport, KY
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Elder Law Center of Northern Kentucky
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Let me add to my previous response that the inheritance tax is her responsibility and is she cannot require the rest of you to contribute in ordet to pay it if the will does NOT specifiy that all INHERITANCE taxes are to be paid from the estate.
Jan Kreutzer
Answered on Feb 19th, 2019 at 1:06 PM
Aged and Aging Attorney serving Newport, KY
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Elder Law Center of Northern Kentucky
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If the will says that inheritance taxes are to come out of the estate, then the estate lawyer is correct. I am assuming, however, that the property is going to be sold to someone (rather than be owned by three sisters and a sister-in-law), so that should generate the money to pay the taxes.
Jan Kreutzer
Answered on Feb 19th, 2019 at 1:03 PM