Law Offices of Frye & Vazquez, P.L. - estate planning
Se Habla Español

Coronavirus Update: We have been leveraging technology to serve our clients for years.  We are equipped to address your estate and healthcare designation planning with proper precautions in our office or remotely through telephone and video conferencing. Social distancing does not have to stop you from attending to your planning needs. Please call us at 305-508-5749 for further details.


Contact Us
305-508-5749

Blog

Heirs say IRS overvaluation raised amount of estate tax owed

When a person passes away in Florida and leaves behind property and investments, family members may be responsible for paying a tax, based on the total worth of the inheritance. In such cases, the Internal Revenue Service may examine the estate and determine its value in order to calculate the amount of estate tax owed.

It is also possible that the IRS and the heirs of the estate will disagree over its value. Sometimes, the dollar amount placed on an estate by a family may be very different than the amount assigned to it by the IRS. When this happens, heirs may find themselves facing a much larger estate tax bill than they expected.

This is the situation for the family members of the deceased owner of the Minnesota Twins baseball team. The family is contesting the value placed on his ownership of the team by the IRS, which has led to an unexpectedly high estate tax charge. They feel the amount of the investment was substantially less than the $293 million the IRS says it is worth, and as such, they are choosing to pursue the dispute directly with the agency. The estate tax bill given to the family also includes an additional penalty added by the IRS, bringing the total bill to $255 million dollars, which is much more than the $24 million the family claims the ownership of the team is worth.

Estate law can be quite complex, especially if a substantial amount of money and property is involved. If family members find themselves faced with an estate tax bill that is based off of a value that exceeds what they feel the property and assets are worth, they may want to consult an experienced attorney for assistance.

Source: UPI, “Twins heirs dispute IRS’ $207 million estate tax bill,” July 21, 2013

badges

Archives

FindLaw Network