How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ely Your Own Question
Ely, Counselor at Law
Category: Estate Law
Satisfied Customers: 99523
Experience:  Fully licensed attorney in Texas in private practice.
Type Your Estate Law Question Here...
Ely is online now
A new question is answered every 9 seconds

I live in Utah and have few assets to my name. I recently

Customer Question

I live in Utah and have few assets to my name. I recently named a payable on death beneficiary to my checking & savings accounts. Total assets in those accounts usually average about $30,000. Will the beneficiary be responsible for paying estate taxes on those funds upon my death? If so, how would this work? Making someone a POD beneficiary avoids probate, does it not?
Submitted: 2 months ago.
Category: Estate Law
Expert:  Ely replied 2 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The answer is no. A POD clause does not go through probate. It is not a probate matter. At one's passing, the bank would simply turn the account over to the beneficiary on the POD. The beneficiary would not pay any type of estate or gift taxes, because this would not be a probate matter. The whole point of the POD is to avoid probate.

This would be seen as income tax, however. They would have to report it as such.

Otherwise, this is not taxable as it is not probate, and it falls well below the threshold of millions of dollars when the federal tax applies in such a situation (that the estate would have to pay anyhow, not the beneficiary).

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.