In Widtfeldt v. Commissioner, U.S. Dist. Court, D. Nebraska (8:18CV453, September 17, 2019), a beneficiary who received property from his mother by gift and at the mother’s death was personally liable for the unpaid estate and gift tax.
The beneficiary received four parcels of real estate from his mother by gift or at death. Gift and estate tax returns were not filed by the decedent or her estate. The IRS determined that the estate owed gift and estate taxes, plus penalties and interest.
In accordance with Code Sec. 7403, the court ordered the sale of two properties owned by the beneficiary to satisfy the estate and gift tax liabilities.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.