Death of CD Owner - Interest Reporting

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Question:

We have a CD with a father as the primary owner and his two children as co-owners. The father passed away. Does the interest get reported to the father’s social security number up until the date of death?

Answer:

If the three depositors were co-owners of the account, reporting of the interest could be made under the Social Security number of any one of them. If the number used was the father's, the interest reported should not include interest earned after his death. The interest after death should be reported under the Social Security number of one of the surviving owners of the account.

First published on BankersOnline.com 8/03/09