Hello, Kathleen64!
I first want to say I am sorry for your loss and how challenging figuring out all of this can be, so I will just try to explain how each type of account is handled in terms of taxes, withdrawals and distributions.
Bank accounts: When your spouse dies and you are listed as a joint owner on a bank account with "rights of survivorship," then the entire balance of the account automatically transfers to you upon their death, allowing you to withdraw any funds as the sole remaining owner without further legal action needed;this typically happens even without a will and no direct tax implications,
Pensions, IRA's and other types of Retirement Accounts: When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant’s designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity).
As the surviving spouse should contact the deceased spouse’s employer or the plan’s administrator to make a claim for any available benefits. The plan will likely request a copy of the death certificate. Depending upon the type of plan, and whether the participant died before or after retirement payments had started, the plan will notify the surviving spouse as to:
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The amount and form of benefits (in other words, lump sum or installment payments under an annuity.
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Whether death benefit payments from the plan may be rolled over into another retirement plan; and
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if a rollover is possible, the method and time period in which the rollover must be made.
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There may be tax consequences depending on what type of plan it is, as well.
Brokerage Account: Figuring you were listed as the beneficiary on his brokerage account, one would typically cash it out, meaning the funds in your case would be transferred to your own account and then you would access them as the new owner. Then, if you decide to sell these assets, you would then be taxed on any that are sold at a gain.
Here are some additional resources for more information, please see:
Please feel free to reach backout with any additional questions or concerns you might have!
Have an amazing rest of your day and best of luck going forward!
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Terri Lynn
