Probate and the Collection Process
When a person dies, a legal process called probate usually occurs. A personal representative (executor) of the deceased must file any missing returns and pay tax debts. Debts are paid using assets from the estate. (See Minnesota Statute 289A.08, subdivision 1(b) and 289A.31, subd 1(1).)
If the personal representative transfers assets without paying tax due, we can hold the personal representative, heirs, beneficiaries, and spouse liable for the debt.
If we are collecting for another agency, we return the debt to that agency.