Unclaimed Inheritance Properties - Are They Taxable?

[FB25]

Named an heir in uncle's will and inherited when he passed. Recently learned that there are unclaimed properties of his that were reported by the state of Arkansas. The properties are listed as "Insurance Premium Refunds" and "Matured CD or Save Cert." If claimed, will these properties be considered taxable income by the state of California?

[kdevere]

California doesn't have an estate tax.  The Insurance premium refund would not be taxable, however the CD may contain some taxable income, if there is growth in income, interest earned, etc, after the date of death of the decedent.  So any interest earned after that date would be taxable on that CD or savings certificate.  Arkansas also has no inheritance tax, any taxes that could have been levied would have been levied on the estate during probate.  There is no inheritance tax in California or Arkansas on decedents.

[FB25]

Thank you very much for the detailed answer, kdevere!

FB25