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Taxation of Income in year after death

My father died at the end of 2013. He had several Certificates of Deposit maturing in 2014 payable on death to me. The bank will not transfer the account to my name. The options are to take the funds out now or at maturity. Since today's rates are lower than the original CDs rates, I would like to wait until maturity. If I do this, will the 1099-INT for 2014 be in my fathers name and Social security number? On what 2014 income tax return would this interest be reported?

Reply to
kurtabbott1
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Upon your father's death, ownership of the CDs automatically transferred to you. Regardless of who's SS# is on the 1099-INT, it all belongs to you and winds up on your tax return. It is possible the bank already has your SS# as some banks require it for the named POD beneficiary. Most banks use the method you are facing: Cash out or let it sit. Most banks will waive the early withdrawal penalty when cashing out upon the death of the owner.

Reply to
Alan

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