Are Cd's with POD designations taxable under Arizona Estate Tax Law?

Depends! What is POD?

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Originally Posted by AtlantaTaxExpert

Depends! What is POD?

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"Payable On Death"

That's what I thought; just wanted confirmation.

The funds in the CD STILL belong to the decedent and hence are STILL part of his/her estate. The fact that they transfer to the beneficiary upon death does not change that fact; it just makes the CDs NOT subject to probate.

This being the case, the executor would still have to include the CD amounts as part of the estate.

The Arizona Estate Law follows the same guidelines as federal estate law, in that the first $2M of the estate is EXEMPT from taxation.

Hence, if the estate's total value, including the CDs, is less than $2 million, you have nothing to worry about.

A phone call to the Arizona Department of Revenue will confirm this for you.