Will the IRS take the home left to my brother in a will? How? 17 Answers as of September 16, 2015

I am writing on behalf of my mother-in-law. She is 85 and wants to leave her home to her son. Who doesn't have much at all and the other brother (my hubby) is absolutely fine with that decision. A simple will should take care of this but now she tells me that my brother-in-law owes 30k to the IRS. Is it wise for her to still put the house in his name? Won't the IRS take the house?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Christine Sabio Socrates Attorney at Law | Christine Socrates
If her son has an IRS debt, they can go after the home if it put in his name. I would recommend putting the home in a trust that will protect the home until he is ready to take ownership after the mother's death. This should be done while she is living.
Answer Applies to: Ohio
Replied: 9/16/2015
Law Office of Pamela Braynon | Pamela Y. Braynon
If the brother does not make some type of arrangement with the IRS (and that can be a viable option) if the property is in his name, it is likely the IRS will take ownership of the property.
Answer Applies to: Florida
Replied: 9/14/2015
Ronald K. Nims LLC | Ronald K. Nims
Yes, the IRS will take the house. The most obvious way around this is to put the house in a trust, so your brother can live there but not own it.
Answer Applies to: Ohio
Replied: 9/10/2015
Law Offices of George H. Shers | George H. Shers
Once he inherits the home when she dies, sure the IRS will go after any assets he has that they find out about. Why wouldn't they? It might be better for her to put the property into a trust so he has no ownership interest but can live there rent free or at a reduced rent. ?She needs to speak to a local attorney who handles trusts and estates to find out what the best solution is. If your husband is fine with his brother getting all the assets, he should definitely avoid getting involved with the matter as in estates no good deed goes unpunished. Don't volunteer to be the unpaid trustee, as it will just cause friction between the brothers.
Answer Applies to: California
Replied: 9/10/2015
O'Keefe Legal Services, L.L.C.
O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
In Maryland, it is possible for the IRS to seize/levy property a delinquent taxpayer owns/inherits to satisfy tax debt. However, because something is possible does not mean it will happen. It would be wise for your mother-in-law to consult an estate planning attorney to discuss her goals and options to meet those goals.
Answer Applies to: Maryland
Replied: 9/9/2015
    Stephens Gourley & Bywater | David A. Stephens
    The IRS could take the house if it is in his name.
    Answer Applies to: Nevada
    Replied: 9/9/2015
    Law Ofices of Edwin K. Niles | Edwin K. Niles
    It is always better to inherit than receive as a gift, because the recipient gets a stepped-up capital gains basis. You don't say why the money is owed, so I can't really answer that question. Mom should have a conference with an estate lawyer.
    Answer Applies to: California
    Replied: 9/9/2015
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    The IRS may take the house or put a lien on it for back taxes. Perhaps the better question is can your brother-in-law afford the expenses of owning a house if he's so deeply in debt? If she's adamant about him having the house, perhaps she should put it in a trust with him as the beneficiary.
    Answer Applies to: Nebraska
    Replied: 9/9/2015
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    Not wise to home in brother's name. Check with a probate estate planning attorney and your accountant for tax implications.
    Answer Applies to: California
    Replied: 9/9/2015
    Ashcraft & Ashcraft, Ltd.
    Ashcraft & Ashcraft, Ltd. | Randall C. Romei
    The IRS has the ability to attach their tax lien to any property owned by the tax debtor. This means the IRS could execute the lien against the property and force a sale with the proceeds applied to pay off the tax lien. Even if the IRS did not force a sale the lien would have to be paid if the property were sold in a private sale and the lien paid off before the net proceeds are received by the owner.
    Answer Applies to: Illinois
    Replied: 9/9/2015
    Edward L. Armstrong, P.C. | Edward L. Armstrong
    If the son to whom she wishes to leave property owes the IRS $30,000, in all probability they will assess a lien against the property and ultimately take it, sell it and apply the proceeds against the tax owed.
    Answer Applies to: Missouri
    Replied: 9/9/2015
    Goldsmith & Guymon
    Goldsmith & Guymon | Dara Goldsmith
    She should speak with an estate planning attorney. She probably needs a trust as part of her estate plan.
    Answer Applies to: Nevada
    Replied: 9/9/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    With just a simple will and a direct deed the IRS would indeed consider the inherited home his asset and subject to potential collection action. There are ways to protect such a gifting, and therefore would be very wise for your mother-in-law to see an attorney and perhaps avoid probate altogether.
    Answer Applies to: Michigan
    Replied: 9/9/2015
    Attorney At Law | James G. Maguire
    If the IRS has a lien against your brother-in-law, the lien could end up being against any property he owns, including anything your mother-in-law would leave to him in a will.
    Answer Applies to: Louisiana
    Replied: 9/9/2015
    Bunch & Brock, Attorneys-at-Law
    Bunch & Brock, Attorneys-at-Law | W. Thomas Bunch II
    Yes, the IRS will file a Notice of Tax Lien against the house (if one is not already filed of record). It would be VERY IMPORTANT that your mother-in-law create a trust for his benefit to HOLD the home in the name of the trust for his use during his lifetime, and thereafter, go to other beneficiaries. Please take her to a lawyer right away.
    Answer Applies to: Kentucky
    Replied: 9/9/2015
    Robert E. Giffin | Robert E. Giffin CPA
    The IRS will get a lien on the house, have your mother put the house in a trust.
    Answer Applies to: Ohio
    Replied: 9/9/2015
    Bruce Steiner Attorney at Law | Bruce Steiner
    A complicated Will leaving it to him in a trust for his benefit will better protect the house against the IRS (and any other creditors he may have).
    Answer Applies to: New York
    Replied: 9/9/2015
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney