Pod Cd

[GODONNELL]

What is the name of your state? Georgia

The seniorjudge of Wills, Trusts and Estate Planning advised me he was unable to answer the following question and suggested I contact you for an answer.

What is the Federal tax liabillity of a person who receives a bank POD Certificate of Deposit? If there is a liability is a 1099 form sent to the payee.

 

[abezon]

The liability is to pay the taxes on any interest earned after the prior owner's death. Interest earned before the prior owner's death is reported on the decedent's estate tax return as "income in respect of the decedent."