Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I think the liability depends on who the house was given to in the will. if it was explicitly given to the children(for example) in the will and it is currently owned by the estate as the estate process is sorted through until the property can be distributed out, then the beneficiaries of the estate are liable.
On the other hand, if the estate itself was named as the receiver of the house(and possibly other assets), and then the executor has some control/power to decide which property each beneficiary will receive on dissolution of the estate, then the estate itself would assume liability....
I have some knowledge of these issues, but am not an expert. I strongly suggest you talk to your attorney about these issues. They can be very complex, and can vary for each state....
Another point....
If the house is going to be sold at a loss, then the loss can be absorbed by the estate as well. In that case, it would reduce, or eliminate any tax that the estate has to pay on its own income....
Estate have to file a 1041 if they have income >$600
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.