Legal Question in Wills and Trusts in Massachusetts
Fathers estate having to go through probate in Massachusetts. Administrator told he has to pay "estimated" estate tax as condition to recieve permission from probate to sell his home.
Our attorney gave us a rough guess amount of $70,000 tax !
Administrator /family does not have this type of cash money. Father's estate would only have this type of money if /when house is sold--all other assestts are IRA 's. Furthermore, there is still a sizable mortgage on the home that family has burden of paying until home is sold.
We feel we are in an impossible situation --cant pay the estate tax until we sell the house, but cant sell the house until we pay the estate tax. I dont know of many people who can just write a check for $70, 000. 00 esp when estate settlement may be years from now.
Any advise would be much appreciated.
1 Answer from Attorneys
You have a couple of options, your attorney can prepare a 706 and determine the amount of the Estate Tax and contact MDOR and get an agreement as to the amount of tax due and get them to agree to accept that amount from the proceeds from the sale of the assets.
Alternative, is to borrow the funds against the home while you put the home up for sale.
The settlement of the estate should not take more than 18 months unless their are complications in the estate other than liquidation of assets.
You also may be able to borrow from the IRA's under a hardship exemption.
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