Are there taxes for claiming money from my deceased parent? I was listed as a beneficiary on her bank account when she passed. Will there be any taxes due later on?

[ladylink22]

Before my parent passed, they listed me as a beneficiary on their bank account. I did all that, and I'm being told that when the fiscal year is over, the government is going to charge interest on something because I claimed the money and put it into my savings. Can someone please explain if this is the case for this situation? My parent didn't leave an official will to cover anything.

[VolvoGirl]

No.  Cash is not taxable.  You might have some bank interest to pay tax on.  You will get a 1099INT at the end of the year for any interest they pay you over $10.  Was it just a regular bank account or was it in a IRA account?

[ladylink22]

It was a regular bank account. They gave me a check for the total amount in that bank and I put a good sum of it in my savings. Is the 1099INT going to come from my bank, my mom's bank or anywhere else that's going to charge me the interest? Would it help me just to take that money out of my savings?

[fanfare]

The money is yours now.

Interest is taxable.

Interest rates are going up. 

@ladylink22 

[Opus 17]

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@ladylink22 wrote:

It was a regular bank account. They gave me a check for the total amount in that bank and I put a good sum of it in my savings. Is the 1099INT going to come from my bank, my mom's bank or anywhere else that's going to charge me the interest? Would it help me just to take that money out of my savings?

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If the bank pays more than $5 of interest, they must issue a 1099-INT to the account holder.  That would be your parent up until the date of their death, and you afterwards.  If you withdrew the money right away, there was probably no interest payable to you (or very little).  If your parent received interest income before they died, that should be included on their final tax return.  (Someone needs to file a final tax return if they had taxable income, that would normally be the executor of their estate.)

[NCperson]

@ladylink22 the 1099INT is going to come from each bank you  or your Mom had money in, subject to the minimums quoted by others.  So your Mom's bank is going to send a form, your bank is going to send a form, etc.  And if you and your mom had separate accounts at the same bank, it'll be separate forms, as it's keyed off the social security number for each bank customer.