POD Beneficiary Claim

Forum|Forum|7 years ago
June 6, 2019
8 replies
55 views

My mom passed away this summer and left her kids including me the money she has accumulated in 2 banks, equally divided. It was not from 401K or IRA accounts. The amount of money is several thousand dollars. I submitted the beneficiary POD claim at the bank and received the money after a few weeks. I received a 1099-INT form from the bank for $10.74 which I assume is the interest gained between her death and me getting the $ but have no 1099 or tax forms from the bank for the several thousands of $. Do I need to pay taxes on the several thousand dollars I received or just the $10.74 interest I received. Thanks

Best answer by jtax

You only need to pay income tax on the interest received.

Gifts are not taxable. Inheritances are gifts.

https://www.law.cornell.edu/uscode/text/26/102

26 U.S. Code § 102 - Gifts and inheritances

(a)General rule

Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.

jtax

Answer

Level 10

You only need to pay income tax on the interest received.

Gifts are not taxable. Inheritances are gifts.

https://www.law.cornell.edu/uscode/text/26/102

26 U.S. Code § 102 - Gifts and inheritances

(a)General rule

Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.

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cookiesandcream18Author

Level 2

Thank you

myTax

Level 2

Should 1099-INT form, from the bank for $10.74 be reported as interest under her mom's estate and not hers ? (not on the beneficially 1040 income tax return)

2) Does POD bank account bypasses estate account altogether and becomes owned by the beneficially immediately after owner's death since it avoids probate ?

My mother passed away this summer as well.