Legal Question in Wills and Trusts in Georgia

After handling everything, I thought, and disbursing assets to the heirs, I just learned that I have to file a tax return for income on the estate I was executrix for. My uncle passed away in 2009. The estate was closed out in 2010.

I have been told today by a CPA that we (beneficiaries) should file it as personal income which would be easier than filing as an estate. Two questions:

1. If the other 2 do not pay their part, am I liable?

2. The estate income was $10,000.00 for land rent in 2010. There was debt of $40,000.00 against the estate which was divided between the beneficaries/heirs. How can this be considered as taxable income for us when we acutally inherited debt?

The $10,000.00 was applied to expenses of the estate except for the final $2,500.00 which was divided equally between beneficiaries.

It was disbursed because I, the executrix, thought everything was completed.

My Uncle, whose estate I am speaking of, was 88 and no longer was req. to file income taxes, so I did not know that this would have to be filed.


Asked on 1/28/11, 8:04 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Ignorasnce of the law is no excuse and you should have had a lawyer and CPA when you did probate. In failing to do so, you are in a bad position and may be personally liable for the taxes (and penalties).

You cannot obviously seek penalties from the others for your negligence. You may be able to sue them to contribute for the taxes but then they can sue you for malfeasance as executor.

Get a good lawyer and CPA. You will spend more now than if you had hired them when you should have.

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Answered on 1/29/11, 2:26 pm


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