Legal Question in Wills and Trusts in Illinois
Payable on Death Accounts
If someone leaves me money from their savings account by a P.O.D. designation, is it therefore considered an inheritance and NOT subject to taxation? Or is it only a transaction through a will that is considered an inheritance? Please explain. Thank you.
Asked on 3/17/03, 1:17 pm
1 Answer from Attorneys
Jay Pollak
The Pollak Law Firm, LLC
Re: Payable on Death Accounts
The amount received on a POD account is an inheritance. If you receive something from a deceased person whether by POD, as beneficiary of insurance or profit shareing or pension or otherwise it is an inheritance. They are all subject to tax with some exceptions. This is not one of them. But being subject to tax and having to pay an Estate tax are 2 totally different things.
Answered on 3/17/03, 2:12 pm
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