Tag: estate tax

How Does Tax Debt Work Posthumously?

Nashua Resident Looks for Advice After Losing a Loved One

If there is an outstanding tax debt at the time of death, the IRS can place a federal lien against the
estate. The taxes must then be paid before any other debts or accounts. If this is not done, then the IRS
can pursue payment from the legal representative of the deceased person. Unpaid federal taxes have a
lifespan of ten years. If the tax debt exceeds ten years, then this is no longer able to be collected. If the
debt is under ten years, the family of the deceased will be liable for payment to the IRS.

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How Will My Inheritance Be Taxed?

Amherst, NH Resident Seeks Advice

An inheritance can be taxed through an inheritance tax and an estate tax.  The estate tax will come directly out of the estate before it is divided and distributed, leaving recipients only responsible for the inheritance tax.  There is no federal inheritance tax and only some states, New Hampshire not being one of them, collect an inheritance tax.  In most cases, taxes will already be taken out of the estate before it is given to the benefactors.

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(603) 429-2009

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