[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR20.2002-1]

[Page 239-240]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 20_ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 
1954--Table of Contents
 
Sec.  20.2002-1  Liability for payment of tax.

    The Federal estate tax imposed both with respect to the estates of 
citizens or residents and with respect to estates of nonresidents not 
citizens is payable by the executor or administrator of the decedent's 
estate. This duty applies to the entire tax, regardless of the fact that 
the gross estate consists in part of property which does not come within 
the possession of the executor or administrator. If there is no executor 
or administrator appointed, qualified and acting in the United States, 
any person in actual or constructive possession of any property of the 
decedent is required to pay the entire tax to the extent of the value of 
the property in his possession. See section 2203, defining the term 
``executor''. The personal liability of the executor or such other 
person is described in section 3467 of the Revised Statutes (31 U.S.C. 
192) as follows:

    Every executor, administrator, or assignee, or other person, who 
pays, in whole or in part, any debt due by the person or estate for whom 
or for which he acts before he satisfies and pays the debts due to the 
United States from such person or estate, shall become answerable in his 
own person and estate to the extent of such payments for the debts so 
due to the United States, or for so much thereof as may remain due and 
unpaid.


As used in said section, the word ``debt'' includes a beneficiary's 
distributive share of an estate. Thus, if the executor pays a debt due 
by the decedent's estate or distributes any portion of the estate before 
all the estate tax is paid, he is personally liable, to the extent of 
the payment or distribution, for so much of the estate tax as remains 
due and unpaid. In addition, section 6324(a)(2) provides that if the 
estate tax is not paid when due, then the spouse, transferee, trustee 
(except the trustee of an employee's trust which meets the requirements 
of section 401(a)), surviving tenant, person in possession of the 
property by reason of the exercise, nonexercise, or release of a power 
of appointment, or beneficiary, who receives, or has on the date of the 
decedent's death, property included in the gross estate under section 
2034 through 2042, is personally liable for the tax to the extent of the 
value, at the time of the decedent's death, of such property. See also 
the following related sections of the Internal Revenue Code: Section 
2204, discharge of executor from personal liability; section 2205, 
reimbursement out of estate;

[[Page 240]]

sections 2206 and 2207, liability of life insurance beneficiaries and 
recipients of property over which decedent had power of appointment; 
sections 6321 through 6325, concerning liens for taxes; and section 
6901(a)(1), concerning the liabilities of transferees and fiduciaries.

                           Credits Against Tax