Los Angeles, CA asked in Probate for California

Q: they have questions about probate

if an estate is currently in probate and has been motioned to sell and distribute the proceeds to the beneficiaries but the estate is delinquent on taxes and is scheduled or a public tax auction what are my options what can I do

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James L. Arrasmith
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Answered
  • Probate Lawyer
  • Sacramento, CA
  • Licensed in California

A: In California, when an estate is in probate and facing delinquent taxes or a potential tax auction, it's crucial to take timely action to protect the estate and the interests of the beneficiaries. If the estate owes taxes and is at risk of a public tax auction, you should first seek legal advice from an attorney experienced in probate and estate law. They can assess the situation and guide you on the best course of action.

One option you may have is to petition the court overseeing the probate proceedings for an order to address the delinquent taxes. This could involve negotiating with tax authorities to establish a payment plan or seeking approval to use estate funds to settle the tax debt. Your attorney can help navigate this process and ensure all legal requirements are met.

It's also important to communicate with the beneficiaries of the estate. They have a right to be informed about the financial status of the estate, including any tax obligations or pending auctions. Transparency in these matters can help maintain trust and prevent misunderstandings among the beneficiaries.

If the estate is motioned to sell and distribute proceeds to beneficiaries, but tax issues are unresolved, the court may need to approve any sale to ensure it's conducted properly and that all legal obligations, including tax liabilities, are addressed. Your attorney can assist in preparing necessary documents and petitions to the court to facilitate the sale and distribution process while addressing tax concerns.

Navigating probate, especially when tax issues arise, can be complex and requires careful attention to legal procedures and deadlines. Seeking legal representation early on can help protect the estate's assets and ensure compliance with California probate laws.

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