@JO236 wrote:
Since you are the beneficiary, this would be considered a gift or inheritance. Unless it is a substantial amount, it would not need to be reported. The important thing is to transfer the account in full over to you so it doesn't happen again in the future. All future interest would be your responsibility. Disclaimer: I am not an attorney or a CPA but I have had to settle many estates unfortunately.
No. The principal in the savings account is tax-free inheritance, but interest income paid to the mother before her death is taxable on the mother's return and interest paid after her death is taxable income on the heir's return.
