QUESTION
What will be the tax liability of my father's POD account if it has under $100,000 in it?
Asked on Apr 02nd, 2013 on Taxation - Colorado
More details to this question:
My father has his savings/money a market account as payable on death to his 3 adult children. It currently has under $100,000 in it. What will be the tax liability after he passes?
4 ANSWERS
In Colorado, if that account was his sole asset, the only tax liability should be income taxes and a requirement to file an income tax return for the state and the IRS for the year of his death. Any income accumulated in the account after his death would be taxed on your income tax returns. Due to the size of the estate, if in Colorado, there is no federal death taxes and there is no inheritance tax in Colorado.
Answered on Apr 03rd, 2013 at 9:51 PM
Estate Planning Attorney serving Wilmington, DE
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It passes by operation of law to the beneficiaries at his death. Not income, they will just own the balance equally at his death.
Answered on Apr 03rd, 2013 at 9:51 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Most probably not, unless he has a very substantial estate at his passing.
Answered on Apr 03rd, 2013 at 9:47 PM
Income tax on the earnings on the savings account, no federal estate tax, unless the estate is worth millions, and there may be a small state inheritance tax. U.S.
Answered on Apr 03rd, 2013 at 9:46 PM