Legal Question in Wills and Trusts in New York

Employer Owed Deceased

There's about $60,000 due to my mother's estate from her former employer. Would this be considered an estate asset or would it be income as it is paid to the estate?

We're expecting installment payments at $1000 per month, so it will take about 5 years to pay off, by which time I expect the probate to be closed (intestate, letters of admin with Surrogates Court).

Would the employer withhold any taxes (certainly no SS would be due, I would think)?

Would these payments be considered estate income, or would the total amount owed be considered an estate asset? Wondering about the commission to the administrator.


Asked on 1/18/08, 1:40 am

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Employer Owed Deceased

Q. Would this be considered an estate asset or would it be income as it is paid to the estate?

A. Both.

Q. Would the employer withhold any taxes (certainly no SS would be due, I would think)?

A. It depends on why the $60,000 is due from the former employer. If the $60,000 is salary, then yes, the former employer would issue a w-2 and withhold taxes.

Mike.

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Answered on 1/18/08, 8:12 am


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