Q&A: Tax consequences of a CD bequest

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.

Comments

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