Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Am I correct in understanding that beneficiaries of Payment

on Death (non-probate) accounts are...
Am I correct in understanding that beneficiaries of Payment on Death (non-probate) accounts are NOT liable for taxes on interest earned prior to the death of the owner and the 1099-Int form should be filed by the decedants estate? What can be done when the involved credit union will not send the 1099 to the personal represenative?
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
2/1/2013
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,211
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Stephen G :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything that is not clear.

Customer:

ok

Stephen G :

The interest through the date of death belongs on the decedent's final income tax return and the interest on the account after the date of death is taxable to the beneficiary. The 1099 is issued to the account of the decedent with the decedent's social security number until the account is closed or switched over to the beneficiary. Often, the 1099 figures have to be split between the decedent and the beneficiary by the accountant preparing the income tax returns. Many times, the 1099 that is issued to the decedent is included on the decedent's final income tax return without regard to making any allocation to the periods before & after death, primarily due to the fact that with interest rates so low, the interest allocable to the period after death is not significant.

Stephen G :

Since the Personal representative is responsible for filing the decedent's final income tax return, he or she should be able to obtain a copy of the 1099s. However, most likely the 1099s were sent to whatever address was on the account and are probably in the decedents continuing mail which by now should be forwarded to the Personal Representative.

Customer:

The death was in Nov. & the interest was over $6,000. All beneficiaries shared equally but were sent very different amounts on their 1099s, one $507 another $45, aNOTHER $80. I, as personal represenative, have not recieved a 1099-I to include in the decedants tax filing. Yes, the account was closed in Dec. when all funds were dispersed per POD.

Stephen G :

Was there only one account?

Customer:

I faxed their Estate Accounts Dept. all addresses and information in Dec. & all beneficiaries received their checks, all in the same identical amount.

Customer:

No, a total of 6 accounts - all divided equally.

Stephen G :

One reason there could be different amounts for the beneficiaries could be the timing of the withdrawal of their funds.

Customer:

It was only within a two - three week period.

Stephen G :

Are you the Personal Representative appointed by the Court?

Customer:

We are not going to probate since there are no other accets. I h

Customer:

I have been her POA, SS payee, and have been dealing with all of the medical & financial issues for over 8 yrs. We have not gone to court.

Stephen G :

Well, there's more that one reason to be formally appointed; the Power of Attorney terminates upon death; was there a will? Was it at least filed with the Probate Court? You may need to file a "Voluntary Administration" in order to assume the position of Personal Representative. At this point the bank hasn't been formally notified as to who represents the Estate. That's probably why you haven't been able to get copies of what you need. Have you checked what is happening to the decedent's mail to search for the 1099s?

Stephen G :

If you need to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Again, please remember to rate my response. Bonuses, where you think they are warranted, and excellent ratings, are always most appreciated. Thanks again for using JustAnswer.com.

You may get a short survey from the site; if it isn't too much trouble please answer it; thanks, SEG

Customer:

I was disconnected when we were talking last night. No, the information was not helpful since it did not answer what I should do. And I DID notify the credit union that there was no probate court etc.

Stephen G :

I'm sorry you were disconnected, that's something I can't control; there have been some problems lately in that regard. The whole idea of this "Chat" mode is for us to have a discussion about the issue that is concerning you. Obviously I had no way of knowing if you were disconnected or simply read my comments and were satisfied.

Stephen G :

I can see now that you weren't satisfied and rather than just let your "Poor Service" rating stand, I would appreciate the chance to discuss the situation further with you. Perhaps, you didn't receive all of my comments and therefore you were unable to consider them.

Stephen G :

I will be available all afternoon today if you come back online, just type something in & I should get an email telling me that you have returned. Hopefully, I can then satisfy you and you will upgrade your rating. I have almost a 100% satisfaction score & I would like to keep it that way.

Stephen G :

I had asked you a series of questions & evidently you were disconnected before you could answer them. In case you didn't receive that data, I will repeat it here. Depending upon your answers to those questions, I can better advise you how to proceed.

Stephen G :

Well, there's more that one reason to be formally appointed; the Power of Attorney terminates upon death; was there a will? Was it at least filed with the Probate Court? You may need to file a "Voluntary Administration" in order to assume the position of Personal Representative. At this point the bank hasn't been formally notified as to who represents the Estate. That's probably why you haven't been able to get copies of what you need. Have you checked what is happening to the decedent's mail to search for the 1099s?

Stephen G :

Hello?

Customer:

Thank you for trying to assist me but it is really a question of how to get the credit union to respond and do the correct thing. This "session" has not helped me but it is not your fault. We are not going to probate ..... I intend to submit her tax return (as I have always done) but include the 1310 form. I have her death certificate. The problem remains with the credit union that sent out crazy 1099s to the beneficiaries and have not sent me the proper "official" 1099-I to be filed with her final personal 1040.

Customer:

I have previously called several times to the credit union, faxed them twice (to different offices) and emailed them. I have also had the beneficiaries attempt to contact them and encouraged them to have their tax advisers also call.

Customer:

That all being said I think that you should consider returning a portion at least, of the $45 that I spent on this attempt since I really have gained nothing by it.

Stephen G :

Well, first of all, I explained why the credit union may not be responding to you. If the decedent had a will, even if there are no assets to pass (no assets in her name alone) under the will, the law actually requires that the will be filed with the Court. Normally, if you are the named executor, or the person in possession of the decedent's property and there are no objections, there is an informal procedure that may be employed (a voluntary administration), where you will be able to be the "Voluntary Administrator" and there are no filings or reports that must be filed with the Probate Court. The fact that you do not want to follow my recommendations, is obviously your prerogative; however when you say that "this session has not helped me", that is your choice. If you followed my advice, your problem would be solved.

Stephen G :

As far as a refund is concerned, I can't control that as I will not be compensated as long as your "poor service" rating stands. It is odd that you rated me that way & yet you say "this session has not helped me but it is not your fault". If it isn't my "fault", how does that translate to a "poor service" rating?

Stephen G :

All you need to do is to contact "Customer Service" and ask for a refund. Since we offer a satisfaction guarantee, you will receive a full refund or credit to your charge or debit card of any deposit or payment you made. I can't do that for you, as we don't handle the money & I haven't received any part of your deposit as we do not get paid if we receive a "poor service" rating.

Stephen G :

I hope you are able to get the information you need, again, since the decedent died in November, it is likely that the decedent's 1099s have been forwarded to the address on file with the bank.

Customer:

The address on file is MY ADDRESS. Nothing that you have suggested actually applies except for the suggestion of contacting "Customer Service". Thank you.

Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,211
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified
Stephen G. and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,211
7,211 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I need to amend Form 1096/1099 to issue an additional 1099
I need to amend Form 1096/1099 to issue an additional 10991) Can I fill out form 1099 and 1096 with a black ink pen2) Does the total on Form 1096 only include the additional 1099 ( I had completed 109… read more
taxmanrog
taxmanrog
Master\u0027s Degree
697 satisfied customers
For form 1099-A what happens when the amount of the loan is
For form 1099-A what happens when the amount of the loan is less than the FMV of the property?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
717 satisfied customers
If I get a 1099-Q and I am not the designated beneficiary,
If I get a 1099-Q and I am not the designated beneficiary, but I pay qualified education expenses for my dependent, is this 1099-Q taxable? Please reference an IRS code section or part of a publicatio… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
I received a Beneficiary Claim Form from American Equity
I received a Beneficiary Claim Form from American Equity Investment Life Insurance Co. concerning my deceased Mother's policy (IRA). My question is this: should I have federal/state withholding and at… read more
abci168
abci168
Principal
27 satisfied customers
I received a 1099-Int with an amount in box 11, Bond
I received a 1099-Int with an amount in box 11, Bond Premium, covered lots. Furthermore, there is an amount in box 1, Interest Income. Would I include the Box 11 amount in interest income or subtract … read more
abci168
abci168
Principal
27 satisfied customers
My bank send a 1099-misc for $1000 of interest instead of
My bank send a 1099-misc for $1000 of interest instead of 1099-int. It was checked at box 3 however I am not sure is business checking incentive constitute "prize winnings" ? Because otherwise I would… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
I am trying to reconstruct form 1099- from the Tax
I am trying to reconstruct form 1099-B from the Tax transcript since I did not receive the form, but I am not sure if it indicates "Short term covered" or "short term non-covered" based on the attachm… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
A Form 1041 is filed for a Credit Shelter Trust & shows a
A Form 1041 is filed for a Credit Shelter Trust & shows a loss on the Taxable Income line (Page 1, line 22). Is this loss carried forward?… read more
abci168
abci168
Principal
27 satisfied customers
How do I report this? 1099 INT – Line 8 – Tax Exempt
How do I report this? 1099 INT – Line 8 – Tax Exempt Interest = 6,000 1099 INT – Line 13-Bond Premium Tax Exempt=1,500 1099 (Right Hand Side) Adjustments to Interest-Bond Premium Tax Exempt=1,100 Cash… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
1099 Int - What is the difference between 1099 int Line 13
1099 Int - What is the difference between 1099 int Line 13 bond Premium on Tax Exempt says 30,000 and ajustments to interrest portion which says adjustment to bond premium tax exempt $10,000?… read more
abci168
abci168
Principal
27 satisfied customers
Tax question - Form 1099, Line 8 Tax Exempt Interest
Tax question - Form 1099 , Line 8 Tax Exempt Interest reflects $500; OID 1099 is 0. Under heading Detail for tax exempt interest it says tax exempt interest is $300. Under Detail for Tax Exempt OID it… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
717 satisfied customers
Is the interest you pay on a car loan (1098 INT/Paid)
Is the interest you pay on a car loan (1098 INT/Paid) deductible annually on an income tax return, only the year the loan is assumed, or otherwise?… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I cashed I bonds last year and on my 1099-INT the interest
I cashed I bonds last year and on my 1099-INT the interest was $931.70. There is a box that states I have a FACTA filing requirement, but further down the form is states No FACTA filing requirement. D… read more
Rick Martin
Rick Martin
MBA
92 satisfied customers
Second opinion] when adding the 1099-INT of the decedant,
Second opinion] when adding the 1099-INT of the decedant, whom past in end of October, how do you specifically calculate this number when it was not actuallyy interest earned for the entire 12 month p… read more
Stephen G.
Stephen G.
Sr Income Tax Expert
7,211 satisfied customers
When adding the 1099-INT of the decedant, whom past in end
when adding the 1099-INT of the decedant, whom past in end of October, how do you specifically calculate this number when it was not actuallyy interest earned for the entire 12 month period? also this… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have 1099-Div, 1099-Int and 1099- issued to partnership.
I have 1099-Div, 1099-Int and 1099-B issued to partnership. Where do I report those on form 1065? Does 1099-Div and Int only goes to Schedule K (K-1s) and does not show up on the 1st main page of 1065… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
If a person is a beneficiary of a foreign trust, but not the
If a person is a beneficiary of a foreign trust, but not the trust owner, when he receive money from the trust, should he file form 3520 only, not 3520A, correct? I checked the guide that 3520A is for… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I have a 1099 int. form which shows my mothers S.S. no as
I have a 1099 int. form which shows my mothers S.S. no as recipient's I D. She passed away in 2015. The int is for an investment under her active trust for which I am trustee. I have an EIN number for… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x