As a beneficiary of aPOD bank account of less than $2000, do I have any tax liability?

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As a beneficiary of aPOD bank account of less than $2000, do I have any tax liability?

My cousin died recently and I am the beneficiary of her POD checking account. She lived solely on social security and VA widow pension and had no other assets. The bank account held less than $2000. Do I have any tax liability? Does this get reported on my tax return as income?

Asked on September 21, 2010 under Estate Planning, Illinois

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The bank account monies will probably qualify as part of the gift tax exclusion so an account for less than 2,000.00 will not cost you any monies.  Whether you have to list it on your tax documents as being excluded income is something you would need to review with your tax advisor. But usually anything less than 10,000 dollars (it is actually much higher now) is part of the gift tax exclusion so you don't incur any tax liability -- in other words, that is the point of the law.


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