Beware of jointly owned property

If you own a property with a spouse, an IRS lien affects both of you. Technically your spouse’s lien would only apply to their portion of ownership in the property, but in reality a lien on a property is a barrier to its sale. You personally may be free of the lien, but until your spouse is able to release themselves from the debt, it’s your problem, too.

The same is true for property ownership transferred in a will. If you bequeath the family home to your son and daughter, and one of them owes the IRS money that they’re not able to pay, the other will feel the consequences of the lien as well.