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robinmatt
Oct 26, 2013, 12:25 AM
My Aunt passed away in 2001 and named 2 beneficiaries on one of her properties in CA. Since they didn't have the money to pay their share of taxes within the required one year period, I paid their share directly to the Estate. The property just sold. The Executor just told me that it’s not the Estate’s responsibility to reimburse me what I paid, rather, I have to get it back from the 2 beneficiaries. There has been discord between me & the 2 within the past two years, so I’m not certain they’ll pay me back voluntarily. Can I file a lien against the Estate/Executor so I can get reimbursed before the 2 beneficiaries are paid? If so, how do I do that? I can’t use CA small claims because the amounts exceed the max allowed to go that route.
THANK YOU for any advice given!

joypulv
Oct 26, 2013, 02:37 AM
You paid taxes for 12+ years without a written agreement, and even waited until after the house was sold?
Who is the executor (relative, bank, lawyer)? Is there any other asset pending? Without assets, there can be no lien, and I don't see a basis for a lien. You can't file a lien on the sold house.
I don't see any other recourse but civil court against the 2 heirs.
If you sue each separately in Small Claims, is each amount under the limit?

ScottGem
Oct 26, 2013, 05:37 AM
Has the estate finished probate? If not, you file a claim against the estate with the probate court.

I'm curious as to why you paid the taxes and under what agreement.

AK lawyer
Oct 26, 2013, 06:19 AM
Since they didn't have the money to pay their share of taxes within the required one year period, I paid their share directly to the Estate.

What taxes were those? Normally, the estate would owe such taxes, not the heirs.

robinmatt
Oct 26, 2013, 10:06 AM
The Executor is a relative. The only asset left is the pending sale of the house. Each amount exceeds CA small claims limit.

The estate did not go into probate because there is a Revocable Trust.

The taxes were for Federal Estate Tax. There were no liquid assets left in Estate at the time after initial disbursements were issued. I paid the taxes in 2002 with a verbal agreement that I'd be reimbursed when the Estate has liquid assets from the sale of the property. The Estate's accounting does show I made payment and the Executor is well aware of my payment and verbal agreement.

My Aunt had joint ownership of property, and Trust said no sale of house until last owner passed (2010) & even then, still couldn't sell because of tenant protected law, plus Aunt's share of the property was designated to specific people.

Does the Executor have the power to reimburse me under fiduciary responsibility?

Thank you all for your replies. Truly helpful!

ScottGem
Oct 26, 2013, 11:09 AM
Disbursements should not have been made until all debts were paid. So yes the Executor may have violated his fiduciary responsibility by doing so.

I would sue the beneficiaries and the executor. Your suit can include your legal fees.

joypulv
Oct 26, 2013, 11:13 AM
So the house hasn't sold, and you may have time to sue, get a judgment, and place a lien.
Both estates should have gone through probate, especially with a high valued estate.
It had to be high value in order to owe a Federal tax in 2001, even though the exclusion then was pretty low.
GET A LAWYER, quickly.