All Forum Posts by: Joe Wood

Hey everyone,

I purchased my home in December 2015 with a new septic system installed, paid for by the seller. Soil conditions were dry when I moved in, but I noticed that there was a runoff in my lawn running down from the field. I have contacted the engineer, excavator and town regarding issues with water runoff. Everyone involved has said that the soil here is very clay packed, which it is, and does not filter well. Also, the water table is fairly high. They believe that water is coming upward through the field, and it's not the field failing to percolate through the soil. There solution to the problem was to install a curtain drain before the field, on the hillside.

My question is, since this system is only around 15 months old, who is responsible for fixing the issue? The issue has been happening since installation, so I would think it would be the engineer who did not account for runoff and the necessity to install a curtain drain. I know the excavator just went off of the engineers plans, so as long as they installed the correct soils, they should be fine. When I asked the engineer, what would happen when I go to sell the house, and the field fails only a few years after installed. He suggested that I sell during the dry season when the field isn't completely saturated. I feel the engineer should be responsible for resolving this issue... Not sure if I should contact an attorney or what they are legally liable for here.. Any advice is greatly appreciated.  

Thank you @Dmitriy Fomichenko , I currently have the executor and law office who says that the value of the IRA is combined with the total estate, which is then subject to state level estate tax. Then I have my accountant who is saying that the value of the IRA isn't combined with the total estate value.

@Dmitriy Fomichenko

Thank you for the response. 

Would the estate be taxed as a single entity or would it be divided up between beneficiaries, then taxed? If it were to be broken up, then there wouldn't be an issue with estate taxes. 

@Lance Lvovsky

My CPA is an intelligent guy, he must have not understood what I was asking when questioning whether or not the value of the IRA would be included in the estate. He told me it wouldn't be subject to estate tax. I will clarify it again the next time I speak with him. He also went through the situation recently with his father, so he should be pretty familiar with the process just based on his own experience.

No, he does not have a surviving spouse either. 

@Lance Lvovsky

It most likely will be shy of the federal estate tax limit. Here in NJ, we are charged with state estate tax with anything over 2M. If the value of the IRA is included in the decedent's estate as you have said, then the value will definitely be over 2M.

@Bernard Reisz

I am dealing with a tax adviser, just waiting for him to contact me back regarding this specific question I have. Our financial adviser confirmed that each beneficiary has been named and will receive equal share of the inherited IRA. He said that we will set up the individual accounts in the upcoming week.

I just do not know if this will be subject to the estate tax, even though it is not actually going through the estate. There are other assets (savings, stocks, etc.) that will be going through the estate and are subject to probate. I understand that will be subject to estate tax, but will the IRA?

@Bernard Reisz I have spoken with my tax adviser and going to meet with financial adviser this week. My tax adviser said that the inherited IRA will not go through the estate, therefor would not see estate tax. He told me that since beneficiaries were listed in the will, it doesn't require probate or going through the estate.

I'm just not sure if that since it doesn't have to go through the estate, will this be included in the total number, which would be subject to estate tax.

Hey everyone,

Tax question regarding an inherited, traditional IRA.

I am a non-spouse beneficiary which was listed in the will of the deceased. Therefore, it does not have to go through the estate and probate period.

My question is, even though it doesn't go through the estate, will the amount of the IRA be added to the total amount of what current assets are in the estate?