Discussion:Who Pays the Property Tax at Death?
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Discussion Forum Index --> Tax Questions --> Who Pays the Property Tax at Death?
| 7 March 2008 | |
| Two sisters (A & B) own a home, jt tenants-with-rights-of-survivorship, but lived apart separately.
(A) who lived in home dies in August 2007, leaving home to other sister (B), the joint tenant. (B) then dies in December 2007. Sister (B)'s Estate then sells home to pay estate benificiaries. It is learned that neither sister A or Sister B paid any School/City Property Tax. Summer Tax (School Tax) was due Aug 15th 2007 and covered the period July 1, 2007 to June 30, 2008. Winter Tax (City Tax) was due Feb. 14, 2008 and covered period Dec. 1, 2007 to Nov. 30, 2008. Both Taxes are Billed in advance. Estate of B (Sister that was a joint tenant with (A) prior to her death) sold the house and had to pay the property taxes and now wishes to file a claim against the sister (A's) estate for the Summer School tax that was due in July 2007. Note: (A) died Aug 2007. If a claim is filed against (A's) estate, is it a valid claim and should A's estate pay anything, or should the beneficiaries of (B's) estate forget it? | |
| 7 March 2008 | |
| Sounds like both estates s/b sharing the r/e tax. No matter, it must be paid prior to the closing on the sale. The benes s/n be paid until all bills are squared away. | |
| 7 March 2008 | |
| I won't pay a Summer School tax. Any kid dumb enough to have to go to summer school should pay his own tax.
Michmcack, this is really a case for the People's Court, or Judge Judy. Seems like these two old spinsters were at each others throat to the very end. But as for your answer, I think this debt goes with the land. Upon the death of the first to die (A), one sister (B) ended up with the loot JTROS. I'd certainly try to pen it on sister B. | |
| 7 March 2008 | |
| The property tax follows the property, not the owner. The sister who died last did not "inherit" half the house from the first-to-die. As a joint tenant with right of survivorship, title passed to her by operation of law along with the property tax liability. Unless there is a contractual obligation to pay, my call is that last-to-die's estate is stuck with the whole bill. | |
| 7 March 2008 | |
Where's Wes when you need an  Suppose instead of an unpaid tax it was a mortgage?
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| 7 March 2008 | |
| Now, we're gonna go and get all contractual about it. Ok, prorate to A her share of taxes before her demise. Sue Granny A's estate if it don't pay up. If Granny A DID sign a mtg. per your hypo, she/ her estate is on the line, bank could look the her estate for 100% of it theoretically.
Ultimately, though, if the tax goes unpaid, it will end up as a lien, and the mtg. is in the chain of title too. That's the backgrounder, but that concerns Ceasar and the hypo. banker, and of course, ultimately Granny B. So, we have different causes of action by different parties. Of course, if you could get the reps. and relatives around a table, they could probably hash the whole thing out. Heresy. I'm shooting myself in the foot there. | |
| 7 March 2008 | |
| Thanks for the info.... There was no mortgage on the home and no relatives remaining after the 2007 death of both sisters to hash it out. This is a case where the sole beneficiary of Second Sister's estate is selling the $200,000 home through the estate, and just learned there were property taxes remaining due to be paid at closing. He and his attorney demand the Estate of the first Sister pay them as the tax bill came a month prior to the first sister's death. Attorney for the second sister's beneficiary filed a claim today. Seems if even the above "proration" idea is used, the first sister died 6 weeks into the taxable period so her share of tax would be quite minimal. One would think they would be happy with the "windfall" from the inheritance of the home sale, pay the couple of thousand dollar tax due..... from the proceeds and just be done with it. | |
| 8 March 2008 | |
| As long as both attorneys are working for free this would seem to be the best approach to dealing with 6 months of taxes on a $200K property. :) | |
| 8 March 2008 | |
| Michmack, you have no profile, so we can only conclude that you are a DIY person. Please get professional help. | |
Actionbsns (talk|edits) said: | 8 March 2008 |
| I can't resist this, I know who is going to pay the property tax on my Dad's property when the issue comes up - the Greedy Little Snot Nosed Stupid Step Brother. (REF: Living trust problems and greedy relatives) | |
