The estate of the deceased “Playboy” playmate Anna Nicole Smith is facing serious tax trouble, after the Internal Revenue Service declared this week that it won’t wait any longer for overdue payments. Poor estate administration in the years after the model’s death may be to blame for the mix-up.
The IRS claims that Smith’s estate owes more than $300,000 in back taxes that have been pending for nearly 10 years. The debt has been prioritized over all others that may still be pending against the estate, according to recently released documents. Smith had a series of tax liens placed on her residences as early as 2000, according to court records.
Smith had been a part of a protracted lawsuit regarding her former husband’s estate distribution. She claimed that she deserved a cut of the $474 million inheritance doled out by her wealthy and elderly husband. Instead, all of that money was awarded to the man’s children after his death, leaving Smith to fend for herself.
Smith earned a substantial sum by modeling and acting, even after her husband’s demise. Smith’s estate was valued at about $1.8 million after her death in Florida in 2007. She died of an accidental drug overdose, shortly after the birth of her daughter and heir. Her son had died from a drug overdose shortly before her own passing. The entirety of the estate was left to Smith’s daughter, who is currently under the care of her father.
The money led to a custody battle after Smith’s death, with her attorney contending that he was the child’s father. The matter was finally settled with a paternity test.
It remains unclear how much money is left of the child’s inheritance. For that reason, experts say they cannot speculate about how the IRS’s decision could affect the little girl’s financial future. The fiasco shows the value in responsible estate planning no matter how young an adult is. If you have assets you want protected, it’s to your advantage to begin planning as soon as possible.
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