Before mom's death we had 2 joint bank accounts.
1st account: Rights of survivorship. Account was our “mad money account.” We both deposited and withdrew money. Account had cds as well.
2nd account: Joint with Rights of survivorship to me and a trust listed as beneficiary. I was joint account holder on this account so if anything happened to mom I could access the money to pay for her needs. No mention in her will or trust about disbursement of funds after her death for this account.
The bank closed both accounts after her death. I opened a new account in just my name.
Question: Do I have to pay inheritance or gift tax on either account? Account 1 had balance of $300k. Acct 2 had balance of $130k.
"Is inheritance taxable?
Inheritance taxes are set by the state, so where you live, the specifics of your inheritance and your own tax situation are factors in how much and whether you pay.
Are you taxed on money you inherit?
There is no federal inheritance tax. In fact, only six states — Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania — impose a tax on inherited assets as of 2024.
An inheritance tax is not the same as an estate tax. Beneficiaries are responsible for paying inheritance taxes, whereas estate taxes are taken out of the estate itself."
Source: https://www.nerdwallet.com/article/taxes/inheritance-tax#:~:text=There%20is%20no%20federal%20inheritance%20tax.,inherited%20assets%20as%20of%202024.&text=Iowa%20Department%20of%20Revenue.,Iowa%20Inheritance%20Tax%20Rates.
So, we can't answer your question since you don't tell us what state your'e in, plus we're not accountants or estate planning attorneys.
Then you need to consult a Trust and Estate Attorney.
I was Trustee of Trust for my brother and I was POA for my brother. I was on several accounts and CDs. I was Executor. I was Trustee on his death. I used a Trust and Estate Attorney while I did most of the work myself. She was a great help and she cost little compared to the amounts I was dealing with.
Inheritance tax isn't applicable in the state of California, and isn't Federally for the amounts you list. Whether or not your own state has inheritance tax you can find out online. I believe most do not. Inheritance tax usually kicks in for quite large amounts of money.
There is some misunderstanding here already, for you as you say that one account has CDs. Accounts don't have CDs. A CD is a separate Certificate of Deposit from an account. You would take money OUT of an account and put it INTO a CD, a timed deposit. Because there is already some misunderstanding here (banks don't freeze joint accounts or POD accounts unless the senior holder dies with SS wanting recover of last month's deposit), I suggest seeing first the BANKER and next getting a Trust and Estate Attorney. You need good guidance, not just the opinions of a Forum of folk who don't really understand how these accounts are legally created.