[WSBAPT] DOR Tax Warrants on Beneficiary of Estate with Real Estate Assets Only

[Natalie Kuehler]

Hello all,

I have an estate with substantial real estate holdings but nothing else in the way of assets. There are two residual estate beneficiaries, A and B. A has outstanding tax warrants that are a little less than the value of A’s interest in the residual estate. DOR has filed a notice of tax lien on A’s interest in the estate assets. DOR is now telling me that the personal representative has to distribute real estate valued in the amount of DOR’s tax warrants directly to DOR.

Has anybody else ever dealt with this? I can’t quite believe that the PR actually needs to distribute real estate to DOR. It would make much more sense to either (i) require the PR to sell A’s share of the real estate and satisfy B’s tax warrants (and DOR’s tax lien on the estate assets) from that real estate sale before distributing the remaining property or sales proceeds to A; or (ii) require the PR to distribute the real estate to A subject to a lien by DOR.

A is apparently trying to negotiate a settlement with DOR; we have no idea whether that will be successful however. A is also not interested in disclaiming at this point.

Any advice would be greatly appreciated!

Many thanks,
Natalie

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