Is the administrator responsible for decedent income tax. Client distributed inheritance before paying back income tax. Would the administrator be responsible for back taxes?
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Administrator responsible for Decedent Tax
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Originally posted by S&D Associates View PostIs the administrator responsible for decedent income tax. Client distributed inheritance before paying back income tax. Would the administrator be responsible for back taxes?Always cite your source for support to defend your opinion
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If distributions are made incorrectly or prematurely, the administrator must recover the funds necessary to take care of outstanding debts. Normally, documents are signed before closing the estate which certify all taxes of whatever kind have been satisfied and paid, or sufficient funds have been held back in order to cover them. This is the procedure at least in my state. Did admin have to file an accounting at the courthouse? Let's hope he is on good terms with the heirs......... Also, this is why most adminstrators/executors are required to post bond with the governing authorities. If he did not purchase a policy with a bonding company (secured bond), then yes, he may be responsible.Last edited by Burke; 06-17-2019, 03:26 PM.
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