Quote:
Originally Posted by Trueoo7
Is that true about being personally liable?  |
Everyone is entitled to make their own decisions. Patrickt's link to the pdf on Executor's personal liability is telling the straight story. There are a small group of people who will tell you the Federal Income Tax is unconstitutional. There are others that actually believe this to the extent they don't pay their tax. Later after they have been convicted and sentenced to Jail time (like Wesley Snipes) they repent stating they had received "bad advice" from a trusted advisor.
As individuals we all have the freedom to make any choice we wish. Choice however does have consequences soooo, as the old Knight's Templar said to Indy in the cave just before he selects the Holy Grail from all the other chalices - choose wisely!
I will suggest to you my earlier statement is 100.00% True! For those who choose not to believe it - that is your right.
For the rest of us, the Estate Executor/Executrix has the primary responsibility of paying all the taxes the estate owes before anything else. After taxes come other financial obligations. If there are insufficient funds to pay the taxes you have an "Estate Sale" to generate the funds. If there are still insufficient funds then the Executor/Executrix becomes personally liable.
Estate Sales are what happens when people who should have done Estate Planning chose not to (choice again). They are public exhibitions of extreme incompetence in the Estate Planning arena!
If your Executor/Executrix has paid all taxes and debts and then wants to liquidate the Estate's Assets for other reasons, auctions at places like Christies are the smarter way to go.
Ed