Legal Question in Wills and Trusts in Maryland

My Mother passed away June 15, 2008, with a will. I had to step into her shoes paying the bills, she also had 9 mentally ill clients tha thad to be cared for until I was able to get them replaced. She had a rental property and the Alliance, Inc. program for the mentally ill, was paying this ladys rent. In July 2008 they stated cutting the checks in my name even though it was deposited into my mother's account. She also had an additional check come just before the estate was closed in the amount of $55,000. This check was split three ways by the attorney. Now the IRS is holding me responsible for rental property and the whole amount of $55,000. My tax lady said there is nothing she can do at this point. Should go to Philadelphia and try to talk to the IRS, however I don't want to open up a can of worms. Help Please!


Asked on 7/19/10, 12:44 pm

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

Unfortunately your question is too detailed for a good online answer. That being said, you may want to make sure that your mom reported all income received in the year of her death on her last income tax return and paid any associated taxes. You may also want to talk with the estate attorney to determine what taxes the estate paid. Tax issues involving estates can get complicated -- there may be A) income taxes owed by the decedent, B) income taxes owed by the estate C) federal inheritance taxes owed by the heirs/beneficiaries and D) state inheritance taxes owed. The last two categories usually do not come into play for modest estates in Maryland when the property goes to a child.

Note that the specifics of your situation, the terms of the will and the way property was titled / distributed may affect how the law applies to you.

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Answered on 7/19/10, 4:57 pm


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