Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Situation: My mother died last July. I was a Joint Tenant on several bank and stock accts with her for many years, her SSN was the taxid number of record and previous years int/div earnings where reported on her Income tax returns.

Does the IRS differentiate between - "Joint tenant in Common" and "Joint tenant with Rights of Survivorship" types of joint accounts with regard to what taxID number (survivor's SSN or estate's EIN) should be used to report the interest or dividends paid to the acct after the death of the primary owner?

I see in IRS pub (559,page 2, bottom-right col.) that the "Surviving Joint Owners" SSN should be used to report the Interest paid after the death of the primary owner. Does the "type" of Joint account make any difference in this situation?

What is the purpose of each of these types of joint acct for bank and stock accts? Does one type offer more advantages over the other kind? If yes, what are the things to be considered when establishing a joint acct if given the opportunity to select between these two kinds of joint account? Are there other than these two types of joint accounts?

I had been told that the type of Joint Account made a difference in this circumstance - I haven't been able to substantiate that it does. Based strickly on the wording in Pub 559 noted above, I would say that all the post-death int/div paid to the joint accts should be directed to the surviving joint owner's SSN.

Is there any possibility that a "Joint in Common" acct's int/div should be reported to the dead person's EIN taxid instead instead of the surviving owner's SSN?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.