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    Jimatksu's Avatar
    Jimatksu Posts: 1, Reputation: 1
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    #1

    May 2, 2016, 09:30 AM
    Transferring joint ownership of Certificate of Deposits to single owner
    My wife's parents have several CDs that are help in the name of her mom and dad and my wife. Her father currently wants to switch them to just her name as they mature. Her mother is in agreement. Can you change a CD to single ownership at maturity. If so does the one remaining owner on the CD incur a tax liability when it transfers to her name only?
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    May 2, 2016, 10:26 AM
    Does the CD say John AND Jane or John OR Jane? If OR, nothing has to be done. If AND, you can transfer but the bank will require written permission from the second party who is relinquishing rights. The only thing taxable on a CD is the interest, there are no Capital gains since you will receive what you put in. May I ask why they want to do this? For example, if in one name and that person dies without a will, you will have to go through probate under state regulations. Usually OR is a better way then AND.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #3

    May 2, 2016, 11:22 AM
    And if the CDs are held jointly (__, ___, or ___), OP's wife wouldn't be liable for income tax on the principal in any event. However the transfer might incur gift tax liability on the part of the parents. They should consult with an accountant.
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