Deceased tax payer

Poodle

The situation

Father dies and leaves property to son who is also executor.

Father had a propery that had been let out for a number of years but not declared to HMR&C.

Son intends to keep property and let out himself.

What happens to any possible tax liability in this situation? would it be settled through the estate with the son (executor) having a legal requirement to disclose and pay any tax from the estate prior to distribution?

Poodle

deanshepherd

Yes. Executor now has responsibility to administer the estate and settle all liabilities before a distribution is made to the residuary beneficiaries.

That said, does an executor have an obligation to go back and check the deceased's tax affairs for years prior to the one in which death occurred? Probably not, but if they are already aware that the deceased has underpaid tax then that does pose a problem.

Good luck!