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Old 05-28-2010, 10:54 PM
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??? Inheritence and Property Foreclosure/lien

Does anyone know if a person who is set to inherit money/stocks can have that money/stocks taken away to pay a property tax lien on their home??

I "think" if you owe child support they can do this, but, don't know about a property tax lien.

Any clues?
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Old 05-28-2010, 11:13 PM
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While I can't imagine why anyone wouldn't have the morals and values to pay their debt to their community when luck finally fell upon them - Sadly (from a community member's point of view) the answer is no. The person you are asking for is free to live off the backs of others for a bit more.

The lien is on the property and may be paid by the mortgage holder to protect their asset and then start forclosure if the holder doesn't pay up. If there is no mortgage, the town can force the sale and take what is owed to it.
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Old 05-28-2010, 11:38 PM
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I settled a work comp claim for several thousand dollars. Before the settlement could be approved by the state, I received notice from Child Support Enforcement that they had a lien on any settlement this person was to get.
Come to find out, this person was over $25K in arrears (hadn't paid any childsupport in 10 years). I was more than happy to give Child Support the money!

Only in an instances when the person may not realize or may not know that taxes were owed can I see arguing that a lien shouldn't be placed on an inheritance.
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Old 05-29-2010, 12:59 AM
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Property taxes are owed to a town or mortage holder. Neither of which has any involvement in estate distribution. If Grandma in NJ dies and leaves me 20k, there is no way anyone in some town in Missouri can get to that money before it is distributed to me.

Now, if I had fallen on bad times and couldn't pay property taxes, I can't imagine not paying them out of a duty. But, the town or bank can't get to the money and put a hold on it. That is why the town can put the house up for sale and the mortgage company can foreclose if it wants to.

Any State or Federally distributed fund in an entirely different animal.
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Old 05-29-2010, 09:43 AM
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Originally Posted by nightowlrn View Post
While I can't imagine why anyone wouldn't have the morals and values to pay their debt to their community when luck finally fell upon them...........
I agree. Even if legally, the person does not have to pay off the lien, morally, they definitely do have to pay off the lien
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Old 05-29-2010, 11:30 AM
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I agree. Even if legally, the person does not have to pay off the lien, morally, they definitely do have to pay off the lien
Another person in agreement here. The person you are inquiring about will get the distribution BUT once they get it, they need to cash it out to pay their debt. Of coarse I am not a lawyer but if it's a large concern, a lawyer should be consulted.

I would LOVE to say "I can't imagine why anyone would ask this" because I know *I* would never think about it since I take personal responsibility for my actions (and debt). However....I think people like me are not too common anymore
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Old 05-29-2010, 11:37 AM
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methnks if the taxng agency is aware, they can pursue payment via a lien, judgement, or court order or however that is handled in the particular area. This is a black and white issue - the money is owed. Of course, it's doubtful the taxing agency knows the person stands to inherit.

How foolish to not pay property taxes because eventually that lack of action can cause the property to be lost......and these are the types who cry foul that nothing is their fault !

dl
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Old 05-29-2010, 11:43 AM
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I would think that inheritance or estate taxes will have to be paid also??
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Old 05-29-2010, 12:11 PM
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I would think that inheritance or estate taxes will have to be paid also??
In most cases, no. It depends on the amount of the estate, and if so, the estate typically pays that up front - hence Uncle Sam is guaranteed his amount right away.

dl
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Old 05-29-2010, 01:51 PM
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Around here if you do not pay your property taxes, you are mailed a notice to pay. If you do not pay then they put ads in the paper for auction. This is the last chance to pay your taxes. Taxes come out first from the taxes then the owner (mortgage holder) gets the rest.
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Old 05-29-2010, 03:07 PM
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That is what Probate is for, to settle the deceaseds accounts before any monies are distributed, and that can take time. Plus proof must be made to the court of paid accounts. Executor of the Estates responsibilty.
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Old 05-29-2010, 07:40 PM
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In most cases, no. It depends on the amount of the estate, and if so, the estate typically pays that up front - hence Uncle Sam is guaranteed his amount right away.

dl
Another reason to have a living will and living estate.
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Old 05-29-2010, 09:06 PM
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A trust transferrable upon death doesn't generally avoid estate taxes. Unless, perhaps if you are married and have an estate valued well over 1 million dollars. For the average person, it just bypasses probate.
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Old 05-30-2010, 12:01 AM
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aren't death/estate taxes controlled by individual states?
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Old 05-30-2010, 01:37 AM
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Originally Posted by deddlastt View Post
methnks if the taxng agency is aware, they can pursue payment via a lien, judgement, or court order or however that is handled in the particular area. This is a black and white issue - the money is owed. Of course, it's doubtful the taxing agency knows the person stands to inherit.

How foolish to not pay property taxes because eventually that lack of action can cause the property to be lost......and these are the types who cry foul that nothing is their fault !

dl
There is a lien on the property for back taxes. Another company has paid the taxes, hence the lien. So, the tax money is due to the other company, not the county. Also, I have found out this same property is now going into foreclosure for non payment of mortgage.

I am planning to contact the taxing agency to see if they are "interested" in this information about inheritance, adn also the company taht has the lien on the property.

Based on the replies here I am not sure anything can be done but I will at least do what I think I should and alert them to the fact that this person will be inheriting money. Maybe tehy can put a lien on the inheritence?
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Old 05-30-2010, 01:38 AM
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Originally Posted by freebienutt View Post
That is what Probate is for, to settle the deceaseds accounts before any monies are distributed, and that can take time. Plus proof must be made to the court of paid accounts. Executor of the Estates responsibilty.
this is not the deceaseds tax bill, it is one of the heirs' bills. How do you know if all the bills are satisfied? Is that what the ad in the paper is for? i have seen these and wondered.
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Old 05-30-2010, 03:01 AM
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this is not the deceaseds tax bill, it is one of the heirs' bills. How do you know if all the bills are satisfied? Is that what the ad in the paper is for? i have seen these and wondered.
Yes, and that is the beginning of Probate.

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Originally Posted by BlueSkeyes View Post
There is a lien on the property for back taxes. Another company has paid the taxes, hence the lien. So, the tax money is due to the other company, not the county. Also, I have found out this same property is now going into foreclosure for non payment of mortgage.
Impossible, once back property taxes are paid, by whoever they own the property out-right and clear of all liens. Doesn't matter which state in the union either. Some one is pulling your leg with that story. Unless it is the mortgage company that paid the back taxes, another story, cuz the mortgage company would loose to much money.

Going to ignore the above for now. As for your original question, obviously there was a death, hence the "inherit money/stocks, correct? Which means probate is finished, or near finished and the disbursement is next.

If true, your question is more of, since your expecting this inheritance of money/stock, can someone intervene and take the money/stock to be used for the past due tax lien for another heir (other then YOU). Are you the one and same person, or married to him/her, related somehow? Too many variables.

But no matter, Answer: NO, can not be touched unless deposited in an account that has a guarnishment attached to it.

AS Suze Orman would say "NEVER add your spouses name to anything inherited", big mistake.

Last edited by freebienutt; 05-30-2010 at 03:12 AM.
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Old 05-30-2010, 07:32 AM
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Originally Posted by freebienutt View Post
Yes, and that is the beginning of Probate.


But no matter, Answer: NO, can not be touched unless deposited in an account that has a guarnishment attached to it.

Not true, at least in one state / case that I have personal knowledge of - an inheritance WAS used to satisfy back child support and a documented debt.

dl
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Old 05-30-2010, 04:28 PM
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not true, at least in one state / case that i have personal knowledge of - an inheritance was used to satisfy back child support and a documented debt.

Dl
note the words garnished account
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Old 05-30-2010, 06:06 PM
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If the money is put into the person's bank account won't it be seized? Or is that only if they have been sued and there is a court judgment?
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Old 05-30-2010, 06:38 PM
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note the words garnished account
fn - an inheritance does not have to be in a "garnished account" for the creditor to pursue. A court ordered judgement will accomplish the same, however the check is cut to the creditor directly out of the estate. This amount comes out of the affected person's proceeds only, as in "off the top" and affects no one else standing to inherit.

The key is that it is unlikely a creditor knows that someone stands to inherit, unless, ummm tipped off......

dl
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Old 05-30-2010, 06:49 PM
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Originally Posted by deddlastt View Post
fn - an inheritance does not have to be in a "garnished account" for the creditor to pursue. A court ordered judgement will accomplish the same, however the check is cut to the creditor directly out of the estate. This amount comes out of the affected person's proceeds only, as in "off the top" and affects no one else standing to inherit.

The key is that it is unlikely a creditor knows that someone stands to inherit, unless, ummm tipped off......

dl
Your correct I was just coming back to say the same thing! cuz it was buggin' me!

Thank you!
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Old 05-30-2010, 06:52 PM
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Your correct I was just coming back to say the same thing! cuz it was buggin' me!

Thank you!
I think I explained it better in the last post.......you are welcome

dl
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