Are assets such stocks, bonds and mutual funds which were held in a TOD account, and a house that was part of a revocable living trust, subject to inheritance taxes?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Are assets such stocks, bonds and mutual funds which were held in a TOD account, and a house that was part of a revocable living trust, subject to inheritance taxes?

I thought not but I was recently told otherwise.

Asked on May 2, 2014 under Estate Planning, New York

Answers:

Nathan Wagner / Law Office of Nathan Wagner

Answered 9 years ago | Contributor

Yes, those assets are subject to estate tax. By placing them in a revocable trust or a TOD account, you make them no longer subject to probate. So the assets can be transferred to the heirs without an order from the probate court. However, the assets can still be taxed. 

By the way, estate taxes are not an issue for most people. The federal government currently only charges estate taxes on estates with more than $5.34 million in assets. And most states do not have an estate tax. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption