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What should I know about signing a disclaimer deed as a spouse?

What should I know about signing a disclaimer deed as a spouse?

Q: Are heirs responsible for deceased taxes?

Heirs are not personally responsible for the deceased's taxes unless they were co-owners of the property or had a joint tax liability. The estate itself is responsible for settling any tax debts before distributing assets to heirs. If the estate cannot cover these debts, heirs typically do not have to pay them out of pocket.

Q: What happens if you don't do a deceased person's taxes?

Failing to file a deceased person's taxes can lead to penalties and interest on unpaid taxes. The IRS may pursue the estate for unpaid taxes, which can delay the distribution of assets to beneficiaries. It's essential for the executor to file the final tax return to avoid complications.

Q: Can the IRS come after me for my parents' debt?

Generally, you are not personally liable for your parents' debts unless you co-signed or guaranteed those debts. The IRS can pursue the estate for any tax debts owed by your parents. If the estate cannot pay those debts, creditors typically cannot seek payment from heirs personally.

Full question:

My husband and other siblings are beneficiary to this estate that was willed to them since the death of the owner my husband has been paying the taxes on this property. All maintenance of any kind has been solely out of his pocket , we just got married, and I am being asked to sign a disclaimers deed , but yet any other that have married into the family have not been asked to sign anything, where do we stand from your professional point of view?

Category: Real Property
Date: 04/07/2025
State: Arizona

Answer:

A disclaimer deed allows a spouse to give up any claim to property owned by their partner. This is particularly relevant in community property states like Arizona. Mortgage companies often require a spouse to sign a disclaimer deed to prevent them from claiming an interest in the property if their name is not on the loan. This situation is common with property inherited through a will.

If your husband has been paying taxes and maintenance costs for the property, he may be able to seek reimbursement from the estate by petitioning the court that handled the probate of the will. This petition can help recover expenses incurred on behalf of the estate.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Who is responsible for paying taxes for a deceased person?

The responsibility for paying taxes for a deceased person typically falls on the estate of the deceased. The executor or administrator of the estate must file any necessary tax returns and pay outstanding taxes using the estate's assets. If the estate lacks sufficient funds, the beneficiaries may not be personally liable for the deceased's taxes, but it can complicate the distribution of assets.

Do beneficiaries pay taxes on estate distributions?

Generally, beneficiaries do not pay income tax on the value of property they inherit. However, if the estate generates income after the owner's death, that income may be subject to taxation. Additionally, if the inherited property is sold, capital gains tax may apply based on the property's value increase since the date of death.

Are heirs responsible for deceased taxes?

What happens if you don't do a deceased person's taxes?

Does the sale of inherited property count as income?

The sale of inherited property is not considered ordinary income. However, if the property appreciates in value from the date of inheritance to the date of sale, capital gains tax may apply to the profit made from the sale. The basis for calculating gains is typically the property's fair market value at the time of the decedent's death.