If I am a POA on a CD, when that person passes away and I receive the money, do I have to pay taxes on it?
Untitled
Perhaps you meant to have used "POD," which stands for "payable on death," rather than "POA," which is generally understood to stand for "power of attorney." Indeed, a power of attorney ceases to be effective when the individual who granted it dies.
If you receive money as the beneficiary of a "pay on death" account designation, whether or not that transfer of ownership will be taxable will depend on the dollar amount and the tax laws, both federal and state, in effect at the time. Ask a qualified tax adviser for a detailed response that addresses the particulars of your situation.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Perhaps you meant to have used "POD," which stands for "payable on death," rather than "POA," which is generally understood to stand for "power of attorney." Indeed, a power of attorney ceases to be effective when the individual who granted it dies.