How to Inherit Tax Debts

It is possible to inherit tax debt?

Death is one way to escape taxes. It's also a way to escape debt. But it's possible that a deceased's heir could end up being responsible for inheriting tax debt left behind. If you're interested in inheriting tax debt, perhaps out of a sense of social responsibility or to protect another heir from the debt, you can do so with a debtor approaching the end of his life.

Instructions

1. Marry the debtor. Spouses inherit most debt obligations of their partners, including tax debts.

2. Become the top heir to the estate in the debtor's will. Upon death, the Internal Revenue Service (IRS) will go after the debt the deceased owes it by taking it from assets in the estate. If the estate falls short of covering the taxes due, the IRS can pursue the heir for payment.

3. Cosign for auto loans, mortgages, credit card accounts, savings accounts and checking accounts of the debtor. This will simplify collection of the deceased's debt and tie you more closely to her assets.

4. Consult a tax accountant or tax attorney. The responsibility of heirs with respect to tax debt involves many factors, and it's worth getting professional advice and possibly assistance with some of the steps.

References

• Tax Law Offices of Frederick W. Daly III
• Back Taxes Help: When a Family Member Dies and They Owe Back Taxes

Resources

• Consumer Credit Counseling Services: Managing Debt Following the Death of a Spouse
• Thistle Finance: Inheriting Debt