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Q&A: Tax consequences of a CD bequest

February 20, 2023 By Liz Weston

Dear Liz: I currently have a certificate of deposit with what I consider a reasonably high balance. I’ve named a beneficiary in the event something were to happen to me. Would there be tax consequences for the beneficiary upon receipt?

Answer: There’s no federal inheritance tax, but six states — Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania — do assess inheritance taxes. Spouses are typically exempt and the tax rate is generally lower for close relatives.

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Filed Under: Q&A, Taxes

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Comments

  1. Douglas Twedt says

    February 25, 2023 at 9:35 am

    In your list of states that have inheritance taxes, you missed one. Oregon has a inheritance tax of around 9%. Thanks
    Paid it.

    • Liz Weston says

      April 1, 2023 at 7:02 am

      Oregon called that an inheritance tax, but in fact it was an estate tax.

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