Beneficiary
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gingris
New Member

Beneficiary

My mother passed away recently.

She had several CD's.

The CD's are in the name of my brother, with myself listed as a beneficiary. 

My brother is the executor and is ready to close out the account and distribute the funds equally.

My mother lived in New York and I reside out of state.

What is the method to distribute the amount of the CD ?

Will the distribution trigger tax consequences or inheritance tax ?

2 Replies
mellish7777
Level 4

Beneficiary

NY doesn't have an inheritance tax. If your mother had the CDs then why are they in your brother's name? He can write a check to you as beneficiary without tax consequences unless the estate is very large.

rjs
Level 15
Level 15

Beneficiary

This is more involved than a simple tax question. You and your brother should consult an attorney who specializes in wills and estates.


On the surface, it seems that if the CDs are in your brother's name they belong to him, not to your mother, and are not part of your mother's estate. If your brother chooses to give you half the value of his CDs, he is making a gift to you. It has nothing to do with your mother's passing, and is not an inheritance. It appears that the CDs were a gift from your mother to your brother at some earlier date, while she was still alive. But an attorney who looks at all the details might see something different.

 

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