If a relative of mine dies and has back taxes (Federal Taxes) am I liable to pay for it?

Question

Given that the relative who died doesn't own a house or a car, does not have a family, and who does not live in the US anymore but still a citizen and pays taxes when he was alive.

Given also that he has an insurance that he could leave to his relatives.

Are the relatives liable for the payment of his back taxes?

Answer 1

No, the relatives aren't liable, but the estate is, so the money would be taken out to pay the taxes before the heirs got their money.

Answer 2

You relative's estate is responsible for the back taxes.  Any money that goes directly to a beneficiary such as life insurance will not be effected by the taxes owed.

Answer 3

It is possible that back taxes will be required to be paid out of the gross estate of the deceased relative.   The proceeds of the life insurance may be considered part of the gross estate, and the executor may be required to pay back taxes.

If the executor fails to pay back taxes, he may be personally responsible for them.

You need an estate attorney to review the policy.

Answer 4

The simple answer is no.  The "estate" of the dead person is responsible for paying off the debt first and then if there is anything left over it gets distributed to relatives.  If the estate can not pay off all the debts, the husband or wife can be responsible for them (like credit cards or taxes) but it depends on the kind of debt.  Other relatives can not be held responsible to pay the debt.  Life insurance does NOT become part of the estate, unless the estate is named as the beneficiary in the policy.  If the relative is your uncle for example and he names you as the beneficiary of the life insurance, the $ goes to you and you are not responsible for his debts.  But if your uncle named his wife as the beneficiary and his wife died already and he didn't name a second person, it's possible in some cases for the life insurance $ to become part of his estate and be used to pay off debts.