Legal Question in Wills and Trusts in California

My deceased mother is being audited by the IRS, can the fiduciary that is handling the estate pay the beneficiaries their inheritance and hold back an amount to take care of the audit amount?

Asked on 11/15/17, 3:18 pm

1 Answer from Attorneys

Aaron Feldman Feldman Law Group

If your mother has a Trust then a fiduciary can make partial distributions if prudent, that is if he or she knows what the IRS liability (with penalties and interest) might be. Sometimes the full amount of the liability may not be known.

If the Estate is in Probate, that becomes much more difficult because any interim distribution would require court approval.

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Answered on 11/16/17, 7:35 am

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