[WSBARP] Solvency - Insolvency

[Jeff at bellanddavispllc.com]

The IRS can foreclose its tax lien which would end the life estate.  Therefore, if the asset is the only source of money to pay decedent’s debt, the estate should have authority to sell.  If the estate is insolvent you need court authority to sell.  The life estate is in the property not the cash.  The daughter would take the remainder of the estate.  On what grounds is the daughter objecting?

 

Jeff 

 

W. Jeff Davis

BELL & DAVIS PLLC
P.O. Box 510

720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129 
Fax: (360) 683.1258 
email:  <mailto:jeff at bellanddavispllc.com> jeff at bellanddavispllc.com
 <http://www.bellanddavispllc.com/> www.bellanddavispllc.com
 
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of K. Garl Long
Sent: Tuesday, May 11, 2021 3:41 PM
To: WSBA RPPT Real Property Discussion Forum <wsbarp at LISTS.WSBARPPT.COM>
Subject: [WSBARP] Solvency - Insolvency

 

Estate's major asset is agricultural land it leases out.  Its major debt is a large decedent IRS income tax bill.  There is a buyer for the agricultural land.  Will leaves a life estate in the land to testator's sister, with the remainder interest to his daughter.  If the estate can sell the land it can pay its tax bill, but daughter objects to the sale.  

Can PR sell free of the remainder interest?  If so, does life estate holder have an interest in the substantial excess proceeds? Does remainder holder daughter?  Can the IRS execute against the life estate?

Probably more important questions, but I don't want to overburden the brain trust.

Thanks,

Garl

-- 

Law Offices of K. Garl Long - Mount Vernon, Washington - (360) 336-3322

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