11.012 Estate Tax Liens

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Requirement 11.012

Estate Tax Liens

 Estate Tax Investigation:  The Abstract reveals that  John Q. Owner, died, on  January 4, 2005, seized of an undivided  one-seventh (1/7th)  interest in the coal bed methane gas underlying the captioned property.  Mr. Owner died testate, and his will was admitted to probate on February 2, 2005, in the Probate Court of DeWitt County, Alabama.  The residuary clause of his will left everything to his spouse, Susie Q. Owner.  The abstract contains no information regarding the payment of federal estate taxes that may be due on the decedent’s estate.

 The Abstract reveals that Susie Q. Owner, died, on  October 3, 2005, seized of an undivided  one-seventh (1/7th)  interest in the coal bed methane gas underlying the captioned property.  Ms. Owner died testate, and her will was admitted to probate on November 1, 2005, in the Probate Court of DeWitt County, Alabama. The residuary clause of her will left everything to her two children,  Betty M. Owner, and Thomas J. Owner.  The abstract contains no information regarding the payment of federal estate taxes that may be due on the decedent’s estate.

 Section 6324 of the Internal Revenue Code gives the United States government a tax lien on assets of their estates to secure payment of any estate taxes that were due on their estates.  The lien of Section 6324 endures for ten years from the date of death of the decedent.

 Requirement:

 (a.)        Ascertain whether federal estate tax returns were filed for the estates of  John Q. Owner and Susie Q. Owner.  If such returns were filed, furnish copies of the Internal Revenue Service Estate Tax Closing Letters for those estates and proof of payment of all federal estate taxes that were due. If such returns were not filed, furnish lists of the assets of the estates of John Q. Owner and Susie Q. Owner, deceased, and approximations of the values of those assets on  the dates of their deaths.

 (b.)        Alternatively, either satisfy yourself that the United States government does not have tax liens on the captioned property by virtue of unpaid estate taxes due on the estates of John Q. Owner and Susie Q. Owner, or assume the risk of title failure due to the enforcement of any such tax lien.

Copyright 2011 by Edward G, Hawkins. All rights reserved.