How to calculate bonds when for an estate in NJ?

[Tiffanyc]

There's one bond named as the following:

Decedent's Name
Decedent's Address
OR
Surviving Family Member Name (not spouse)

???Basically who should claim the bond the estate or the surviving family member???

Different Scenario's for accounting for the bond:

1 - If you do put a bond into the value of an estate does the surviving family member who cashes and gets the money as of the date of death have to pay tax on the interest accrued in the bond over the bond's lifetime?

2- If the bond does not go into the estate and the surviving family member cashes the bond, does the interest that has accrued over the lifetime of the bond contribute to income and is taxed at an income tax level?

??What are the tax ramifications of who claims the bond??

[seniorjudge]

Originally Posted by Tiffanyc

There's one bond named as the following:

Decedent's Name
Decedent's Address
OR
Surviving Family Member Name (not spouse)

???Basically who should claim the bond the estate or the surviving family member???

Different Scenario's for accounting for the bond:

1 - If you do put a bond into the value of an estate does the surviving family member who cashes and gets the money as of the date of death have to pay tax on the interest accrued in the bond over the bond's lifetime?

2- If the bond does not go into the estate and the surviving family member cashes the bond, does the interest that has accrued over the lifetime of the bond contribute to income and is taxed at an income tax level?

??What are the tax ramifications of who claims the bond??

More discussion here:

[url]http://forum.freeadvice.com/showthread.php?t=307326[/url]


Decedent's Name
Decedent's Address
OR
Surviving Family Member Name (not spouse)

This doesn't pass through the estate; it belongs to the surviving family member and it is up to the surviving family member to report taxes.

[Tiffanyc]

The estate was left to the same person that is on the name of the bond.

Therefore in the end the same person is getting the money.

What's best for tax purposes - claiming it through the estate or through the person?

Is the value of the estate vs. the income of the person the only deciding factor?

[seniorjudge]

Originally Posted by Tiffanyc

The estate was left to the same person that is on the name of the bond.

Therefore in the end the same person is getting the money.

What's best for tax purposes - claiming it through the estate or through the person?

Is the value of the estate vs. the income of the person the only deciding factor?

I don't know how much taxes you will pay, but the amount of the bond does not go through the estate.

[Tiffanyc]

OK. Is that specific to New Jersey?

Do you know of any documentation that I can reference?

[LdiJ]

Originally Posted by Tiffanyc

OK. Is that specific to New Jersey?

Do you know of any documentation that I can reference?

Perhaps you should explain what it is that you are actually trying to accomplish. You got your answer. The bond passes outside of the estate.

[Tiffanyc]

I'm trying to understand why my accountant put the bonds in the value of the estate.

[LdiJ]

Originally Posted by Tiffanyc

I'm trying to understand why my accountant put the bonds in the value of the estate.

Your accountant shouldn't have anything to do with the estate...a probate attorney should be handling that....maybe with some input from your accountant but that is still the job of the probate attorney.

It sounds as though you might not have the best professional advice. It might be wise to consult with some other professionals in your area.