0
   

Why have a beneficiary on a bank account?

 
 
roger
 
Reply Sat 21 Apr, 2012 12:07 am
Does a beneficiary supersede a will? In other words, is the bank account somehow removed from the rest of the estate?

If so, does anyone have any idea of the taxation on the account at death
 
View best answer, chosen by roger
Ticomaya
 
  2  
Reply Sat 21 Apr, 2012 12:11 am
@roger,
I would say yes.

Taxation should be stepped up basis, no?
trying2learn
 
  1  
Reply Sat 21 Apr, 2012 12:32 am
@roger,
roger wrote:
If so, does anyone have any idea of the taxation on the account at death
Yes I do know if the United States.
roger
 
  1  
Reply Sat 21 Apr, 2012 12:33 am
@Ticomaya,
That's outside my experience. A significant point is that my estate will be well below any federal estate tax, so a will should be less expensive, or the same for whoever. By stepped up basis, you mean taxed as ordinary income? If so, that sounds very bad.

Glad to see you up this late.
roger
 
  1  
Reply Sat 21 Apr, 2012 12:34 am
@trying2learn,
Yes, it's the United States. How does it work?
trying2learn
 
  1  
Reply Sat 21 Apr, 2012 12:38 am
@roger,
Each state has an estate tax which doesn't always keep up with the IRS estate tax. Geez there is a good reason why I quit taxes.
0 Replies
 
trying2learn
 
  1  
Reply Sat 21 Apr, 2012 12:40 am
@roger,
The only stepped up basis that I know of has to do with property and death.
0 Replies
 
Ticomaya
  Selected Answer
 
  5  
Reply Sat 21 Apr, 2012 12:42 am
@roger,
Okay, I think I understand your question. The act of acquiring the account by virtue of the death of the testator, is not a taxable event. In other words, if you acquire the POD bank account of a decedent, you will not owe taxes on the amount of the account you receive.

I am only awake by a supreme act of God. Unknown why ...
trying2learn
 
  1  
Reply Sat 21 Apr, 2012 01:00 am
@Ticomaya,
Laughing Laughing Laughing
no disrespect intended, I laughed when you wrote "I am only awake by a supreme act of God. Unknown why ... "
0 Replies
 
roger
 
  1  
Reply Sat 21 Apr, 2012 01:33 am
@Ticomaya,
That's what I really needed to know.
0 Replies
 
 

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