Philly.phan, Home Buyer in Springfield, NJ

Can't clear an inheritance tax lien from 20 years ago to close?

Asked by Philly.phan, Springfield, NJ Wed Jul 11, 2012

My parents always lived with my fathers parents. 20 years ago my grandfather passed away so the house went to my parents. My father lost his business and now needs to sell his house. He has already gone at least 50k under market value. He was not aware of a lien for inheritance tax on the house. It is about 15k which my father does not have and was told he needed to go to settlement. He is being told (threatened from the buyer) that he will be sued if he doesn't "come up" with the 15k. My parents are 70 years old, have no way to get this money. Can they be sued if they can't complete the settlement/closing transaction? This lien just came to light 3 days before settlement.

Help the community by answering this question:

+ web reference
Web reference:


Ibrahim Hugh…, Other Pro, UNION, NJ
Wed Jul 11, 2012
First, I would hope that your parents have a real estate attorney who can best advise them on this issue.

Second, I would think that, like most other liens attached to real estate, this one could be paid at closing. Or are you saying that the lien needs to be Paid in order to obtain an inheritance tax waiver? If so I would think that your attorney and/or title co would have notified you of this sooner. What is your attorney saying?

If you don't have one I strongly advise that you get one asap. Good luck.
0 votes
Gina Chirico, Agent, Fairfield, NJ
Wed Jul 11, 2012

I just answered your other question. Are your parents using an attorney to close on the sale of the home? If yes, what does their attorney say? This is a legal question and really can't be answered by real estate agents as we are not attorneys and cannot give legal advice but take a look at the questions I asked you in your post.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more