Legal Question in Wills and Trusts in New York

In Trust Account

I received a bank book with the deceased as owner and I was named ''in trust for''. Do I have to claim this on my income taxes next year or is the interest only taxable? Also, I cashed this account in and paid for the funeral expenses. The executive in the will of the deceased died many years ago, therefore the estate is in probate court. How long do you think it will take to get reimbursed for the funeral expenses?


Asked on 7/08/04, 1:19 pm

2 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: In Trust Account

The account balance as of date of death is your inheritance, not subject to income tax. Any interest post date of death is your income to report. Any interest from January 1 to date of death is income of the decedent, to be reported on a final return for the dececent. Your reimbursement depends upon how long it takes to probate the estate, release any assets and if there are sufficient assets to reimburse you. This could take several months at the earliest, and longer if the estate is subject to estate or inheritance taxes.

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Answered on 7/08/04, 2:11 pm
Arnold Nager Arnold H. Nager, Esquire

Re: In Trust Account

The interest is taxable to the estate up to the date of death. You are responsible for taxes on the interest earned after the date of death.

Social Security will make payment to the person who pays the funeral bill.

Finally, if you are the closest relative, you may apply to Surrogate's Court to be the Administrator of the Estate c.t.a. (with will attached.)

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Answered on 7/08/04, 2:21 pm


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