In this case the account is closed and liquidated. Either the account’s inheritor beneficiary or the deceased child (if their estate is the beneficiary) must recognize the fair market value of the account, less any basis, as taxable ordinary income.
In this case the account is closed and liquidated. Either the account’s inheritor beneficiary or the deceased child (if their estate is the beneficiary) must recognize the fair market value of the account, less any basis, as taxable ordinary income.