Is inheritance tax paid on certificate of deposit that are held (ITF) in three peoples names?
Estate Planning Attorney
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,
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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.
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.