Estate Planning Tip: Taxable on Death Accounts

Taxable on death accounts have become a popular estate planning technique in recent years. The account automatically passes to designated beneficiaries upon the death of the primary owner. These type of accounts pass to beneficiaries outside of the probate process.

A person’s Last Will & Testament does not govern the disposition of these type of accounts. These accounts would not be available to the estate to pay creditors and administration expenses. It is important that a person periodically examine his or her estate plan to make sure that these accounts are consistent with her overall planning goals. Proper reviews may avoid unintended consequences relating to estate liquidity and to arguments between family members pertaining to wealth distributions.

Alan J. Pecora, CPA, Esq. is a principal in our tax department with more than 22 years experience in the estate & trust area. Alan joined Insero & Co. in 1999 after practicing with various law firms. He concentrated his law practice in the areas of estate & trust administration and tax law. Alan is also a member of the Estate Planning Council of Tompkins County. Alan holds a Bachelors degree in business administration with a concentration in accounting from St. Bonaventure University. He obtained his law degree from Seton Hall Law School. Alan is a Certified Public Accountant in New York, a member of the Monroe County Bar Association, Trust & Estate Section and a member of the Estate Planning Council of Rochester. Contact Alan at 585-697-9612 or alan.pecora@inserocpa.com.

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Posted in Estate Planning

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