What is the name of your state (only U.S. law)? INDIANA
Anyone know who pays inheritance tax on POD accounts in Indiana? If not specified in the will, does the estate pay it or the person listed as POD on the account pay it? There seems to be confusion about this and I find that no one really knows for sure....including attorneys. This type of account is exempt from probate, so it would seem that taxes should be paid separate from the estate since the reason it is set up as such is to avoid probate and give almost immediate access to funds. If it is taxed to the estate, then that would mean it is tax free to the person on the POD. That could be considered a loophole then to avoid paying taxes as well if the estate pays the tax. Seems that then it could be also considered income to the POD listed person and be taxed again? POD seems to be a very gray area. Can anyone shed some light on this?
Anyone know who pays inheritance tax on POD accounts in Indiana? If not specified in the will, does the estate pay it or the person listed as POD on the account pay it? There seems to be confusion about this and I find that no one really knows for sure....including attorneys. This type of account is exempt from probate, so it would seem that taxes should be paid separate from the estate since the reason it is set up as such is to avoid probate and give almost immediate access to funds. If it is taxed to the estate, then that would mean it is tax free to the person on the POD. That could be considered a loophole then to avoid paying taxes as well if the estate pays the tax. Seems that then it could be also considered income to the POD listed person and be taxed again? POD seems to be a very gray area. Can anyone shed some light on this?