Denver, CO asked in Tax Law for Colorado

Q: My father left his house to my sibling - but it's a part of the whole estate - do I have to pay taxes on it?

Related Topics:
2 Lawyer Answers
Tristan Kenyon Schultz
Tristan Kenyon Schultz
Answered
  • Tax Law Lawyer
  • Fort Collins, CO
  • Licensed in Colorado

A: Taxes due on the property should be paid by your father's estate. Once title (deed) is passed to the beneficiaries, the beneficiaries assume the tax responsibility. If you are the PR (executor) you may need to "pay" the taxes, but this is paid from the estate, not from your personal accounts.

If you are referring to the estate tax (which means the estate is worth several million dollars), the estate assumes the responsibility for paying the estate taxes. However, the executor should ideally allocate the tax liability based on the FMV of the property each beneficiary is receiving (note: there are exceptions to this rule).

If you are the PR hiring a probate attorney is highly encouraged. If you are only a beneficiary, you likely do not need a lawyer unless a dispute arising about the tax payments.

D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Licensed in Colorado

A: Property taxes will be paid by the estate until transferred to your brother after which he will be responsible for the property taxes. Estate taxes, if any, are paid by the estate and the recipient of a gift or inheritance is not taxed in Colorado or for federal purposes. The only way you individually would be required to pay tax would be if you distributed property as the Personal Representative prior to paying taxes owed by the estate and the IRS or CDOR came after you to collect those taxes from you.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.