i need help writing a letter to have liens and judgements removed. My bio dad died a couple of years ago, January of 05. The only asset he had was a 1/4 share in his mom's house. One of my aunts wants to sell the house, has a buyer lined up and the first closing date has already come and gone. There are 3 judgements against my dad that need to be settled before the sale can close. They are the IRS 7k (dated 1995), med company 2200 (dated 1996), VA dept Taxation 3440 (dated 1988). They are all past the SOL. The IRS is willing to release the lien since its past SOL and he is dead. The Medical company may be willing to release the judgement. I am waiting for them to call me back. The Va dept of taxation says there is no SOL for thier collections so it must be paid. Virginia's SOL on judgements is 10 years, so everything is past thier date. What needs to be said in the letter to have all this released as quickly as possible? Thanks for the help! Dana
The 10 year statute of limitations may not apply to tax judments. Plus, those judgments are able to be extended an additional 10 years. A tax attorney may give you the best advice.
From what i understand they cannot go back and renew after the SOL has run out, only before it runs out. I am talking about an estate of less than 10 grand before judgements. I will see if there is a tax attorney willing to assist me for very little to no compensation. Dana
If the judgment was not re-filed before it ran out then no it can not be renewed. I looked online but was unable to find specific information about VA Dept. of Tax liens, and their statute of limitations. You may call and ask them what statute provides the never ending limitation.
You need to clarify the word "judgement", were there actual legal judgements against your father? Or were these "debts" listed on a credit report, or were they submitted to your father's estate? I will advise based on the assumption that they were judgements that the SOL has expired upon: First, you will need to obtain a "Release of Federal Tax Lien" from the IRS due to past SOL. GO to the IRS website, and you will find the contact information. (do a search for Fedeal Tax Lien). You will need to write the collection agency stating that the debt is past SOL, include that your father is deceased, and that there can be no legal claim to any assets your father may have left in estate. As for Virginian tax, you should consult with a tax attorney. Though there may be no SOL for tax liability, they may not be able to attach the lien to the property. (You do not state if the real estate is in VA or not). Keep in mind that in the case of death, debtors must petition the estate to collect. The executor of the estate should have published a public notice to such effect, with sufficient time for response.
These three are actual legal judgements against my dad before he died. The real estate is in Va. There has been no administrator of the estate as of yet. I am going to do that tomorrow. I have never really been involved in this part of my family tree. I prefer to pretend they dont exist to be honest. But now i am having to do all of this estate stuff so i can be rid of them eventually. If worse comes to worse, then the Va Dept of taxation will be paid or at least settled for some lesser amount hopefully. Dana
In this case, I would try to negotiate a settlement with VA on the taxes due. Does it look like your father's share of the house sale will cover the amount due (including interst and fines?). This could be coordinated to be done at the closing through an escrow agent. Just make the payoff a part of the closing and distribution of funds. I am certain the Commonwealth of VA will not allow the sale until this has been settled. It sounds like you just want to put this behind you. I would estimate what the final proceeds will be, (sale less fees, commissions, etc.) and negotiate accordingly with the tax agencies. Just be careful if you are the administrator for the estate, you could become liable for any errors or short payments.
His share of the house will not cover the 3 judgements. 2 of them seem pretty responsive to let these debts die along with him, but the one isnt. i have an appointment with the court next week to become the administrator for his estate, then i will be able to talk to the va tax dept to settle this thing. you are very correct. i do not want to pay out of pocket for any of this. it needs to come out of the sale at closing. thanks for all the information. dana
I recommend that you speak to some employees at your courthouse regarding estate law. Estates are somewhat like a bankruptcy approach, you asses the amount available out of the estate, and you first pay off debts in order of priority. I assume VA taxation will be "first in line". But the bottom line here is the "net amount" of the estate (after fees and expenses of closing, etc.). This is the amount that gets allocated to debt payments. In short, after that there is nothing to go after. The only thing to be careful of here is making sure all the "assets" are accounted for. As the administrator you will be liable for that. For example, were there any incpme tax refunds out there? Any property (car, belongings, etc.) that could be sold? You need to make sure you have all of the estate value accounted for. But, if that is done, then this should be a clearly closed issue after the sale of the home.
there are no belongings in his name other than a dead car, worth about 50 bucks to the scrap yard. bizwiz thank you so much for your help with this!
You say your Dad died in Jan '05, did he file income taxes? Did he have refunds from IRS or VA? Also, were there any Social Security benefits he was entitled to? These may help ease the burden. Often these are overlooked in estates, and may be of some help.
