Pomona, CA asked in Real Estate Law and Probate for New York

Q: Will an Escrow be automatically set up for post-sale IRS billing in the procedure of a Partition Sale?

A partition sale by auction was granted to plaintiff, but despite my asking for an Escrow account to be set up pending the closing of the Estate EIN Account, the Judge did not mention such accommodation in his order or direction. My lawyer as said that the judge did not accommodate this escrow, though there was no mention that he specifically ruled it out. Is my lawyer misleading me into understanding that there is no escrow available to account for post-billing by IRA, or will escrow be accommodated upon the decision or conferral with the referee? The property is unprobated and the estate taxes have always been claimed under the Estate Of ... , with my name as the representative, though my brother and I are the co-executors by Will and the co-beneficiaries. (The IRS only allows 1-name as representative/executor on the filings.) The Partion Sale case is in Supreme Court not Surrogate Court. I had been told by my attorney that Surrogate Court was a waste. Is he right?

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2 Lawyer Answers
Michael David Siegel
Michael David Siegel
Answered
  • Probate Lawyer
  • New York, NY
  • Licensed in New York

A: Your understanding of this process is very limited, which concerns me as you have a lawyer. After the sale, the money will be divided among the owners, which I am guessing is the estate and someone else. The cash will be paid to the Estate. Taxes must be paid before a beneficiary is paid. I am not sure what the escrow issue even is, and you needed to probate to be able to act for the estate. Only the Surrogate can do that. Something is not right, but you are clearly not enough in the loop to articulate it right.

Barry E. Janay
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Answered
  • Probate Lawyer
  • Livingston, NJ
  • Licensed in New York

A: Too many issues and moving parts to answer affirmatively on any of the above, but if you have doubts it never hurts to get a second opinion. Unfortunately, since this looks so complicated if you were to ask me to perform said second opinion I would have to request a fee to be paid in advance, but said fee can come from the estate in all likelihood if that helps.

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