Do you pay inheritance tax on certificate of deposit that are in joint names?

Asked about 5 years ago - Beaver, PA

Is inheritance tax paid on certificate of deposit that are held (ITF) in three peoples names?

Attorney answers (2)

  1. Edward Joseph Smeltzer II

    Contributor Level 14

    Answered . Yes and Yes.

    On a joint account opened for more than 1 year inheritance tax is payable on the decedents fractional share of the account. For example if mom had a joint account with 2 sons that held $30,000, and mom died, inheritance tax would be payable on mom's 1/3 or $10,000 of the account. If the account was open for less than one year at mom's death it is all presumed to be mom's and all taxed unless the other owners can prove contribution to the account.

    An ITF account will be fully taxable on the death of the owner. For example if mom hold's a CD in her name only ITF her 2 sons and mom dies the full amount is taxable.

    Very truly yours,

    Ed Smeltzer

    NOTE: This answer was prepared for educational purposes only. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question.

  2. Steven J. Fromm

    Contributor Level 20

    Answered . Yes, but only based on the pro-rata share amount in the decedent's name. In addition, the executor can file the PA Inheritance Tax Return and checkmark that the recipients must pay the taxes on these type accounts.

    Hope this helps.

    LEGAL DISCLAIMER
    Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

23,395 answers this week

2,930 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

23,395 answers this week

2,930 attorneys answering