Mom Passed Away -Had $200K in Bank?

[Burke]

Your OP asked if there was any "taxable event" now. No. Except for interest earned after the date of death, which would be reported by the daughter into whose name it has been transferred. Any interest prior to the date of death is reported on the deceased's return for that taxable year.

[FEDUKE404]

POD consideration

Oops, sorry I misspoke and used TOD when I really meant POD, Payable on Death. It's a designation that allows the asset to pass to the beneficiary without being included in the probate. This explains it without me retyping: https://www.nolo.com/legal-encyclope...hapter1-1.html

POD (and related TOD) are very common, simple methods for transferring assets to a person(s) upon the death of the owner. The most common use of this option is for bank accounts, stock/investment accounts, and stocks directly owned by an individual, such as certificated shares and/or DRIP accounts.

As noted, there is nothing to go through probate (if probate is even necessary) for any POD/TOD accounts.

Differences in state laws may have some impact. I have most of my accounts PODd/TODd to my adult offspring, with not much left over for the will. One caveat is that, at one time, brokerage firms were charging several hundred dollars to set up a TOD registration. Hopefully they came to their senses. My investment accounts are with a well-known discount investment firm, and the TOD process was set up for me at zero cost and with only a minimal amount of time involved. (You have to give "good" information for the recipients, to include name/DOB/SSN/current address/etc.).

All that is necessary upon the death of the account owner is for the POD/TOD person to present a valid (usually original) death certificate to the institution, and the account transfer is quickly done. For an investment account with stocks, there may be some time delays due to registration and proper allocation issues, such as how do you split 27 shares of XYZ stock equally between two TOD recipients. A minor problem.

In this thread, "beneficiary" was apparently just a poor choice of words.

OBVIOUS caveat: Every person's circumstances differ, so anyone considering such an arrangement should carefully consider all financial/estate/etc issues that might be involved.

FE

[JudyL]

All I know that it was a simple CD with the daughter's name as beneficiary on it.

Oops, sorry I misspoke and used TOD when I really meant POD, Payable on Death. It's a designation that allows the asset to pass to the beneficiary without being included in the probate. This explains it without me retyping: https://www.nolo.com/legal-encyclope...hapter1-1.html

[FEDUKE404]

Verify titling of CD

All I know that it was a simple CD with the daughter's name as beneficiary on it.

"Beneficiary" does not seem common for a CD. . .

FE

[zeros]

Just a Simple Contract for Deed.

Do you know how the CD was titled? Was it in a grantor trust or some other label such as TOD that would have a beneficiary designation?

All I know that it was a simple CD with the daughter's name as beneficiary on it.

[JudyL]

How was it titled?

Money is in a cd-not an IRA.

Do you know how the CD was titled? Was it in a grantor trust or some other label such as TOD that would have a beneficiary designation?

[zeros]

Not An IRA

banks use certificate of deposit (cd) , it could be just that or it could be an IRA cd. don't know which one you are referring to

Money is in a cd-not an IRA.

[taxmom34]

banks use certificate of deposit (cd) , it could be just that or it could be an IRA cd. don't know which one you are referring to

[zeros]

Mom passed and the daughter was the beneficiary on $200K certificate. Is there any kind of taxable event that happens now?