Hi I have a question and any advice is greatly appricated. Im an executor of my father's estate and i created an estate checking account using an EIN. My father had assets, a home and a car.and two bank accounts if i sell his car i may get 1500.00. He also had two bank accounts worth about 1000 combined. His estate is going to owe about 5000.00 in inheritance tax. my question is....can i borrow money against the house to pay the inheritance tax??
Estate Checking account
Jan 20, 2009
2 Replies
This is more a legal question than a tax question. And the answer may depend on the laws of the state you are in. In California you can do that, but may need to get court approval first.
Why don't you just sell the house? There are likely to be additional expenses for the estate to pay as well, and that may be the best way to provide liquidity.
Stu
Do you really mean "can the estate borrow money....."?
Best to query the lawyer helping you out, since we deal with tax questions here and not legal ones.
But with only about 5,000 in taxes, would a bank want to make a loan with house as collateral for that small amount?
ChEAr$, Harlan Lunsford, EA n LA
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