Legal Question in Wills and Trusts in Virginia

Re: inheritance

If you have an agreement with the IRS to pay these back taxes and you are current in your payments under this agreement, the IRS will not be seizing any proceeds from insurance policies which you might be receiving as a designated beneficiary under any of these policies.

Re: inheritance

If you are in an agreement with the IRS, they will follow the agreement.

It is technically possible for them to garnish payments due to you.

Even though you entered into an agreement, you still owe the money. So they may not have to wait for the money.

However, if your account is in an agreement statuts, it is very unlikely anyone is even looking at it. As long as it is going along according to plan, probably no one is even going to pull your file out to look at it all. If the computer says everything is okay, no one will pay attention to your account.

It is also very unlikely that they will be aware at all about the payments under the insurance policies. (I believe that insurance polices are not taxable, but it's been a while since I looked at that. I can't imagine there would be very much interest that is taxable. That would only run since your father's passing, NOT during his lifetime.)

Do you have any legal duty to notify them or to pay sooner?

Well, they AGREED to the payment plan.