Interest on Funeral Trust CD

Posted By: BJ Blazko

Interest on Funeral Trust CD - 07/07/20 08:37 PM

A funeral Home is telling us interest earned on a funeral trust is not IRS-Reportable. This is news to us... Does anyone know anything about that?
Posted By: rlcarey

Re: Interest on Funeral Trust CD - 07/08/20 11:09 AM

Funeral Trust accounts are governed under State law. To whom the interest is paid might be addressed in State law, but that has no impact on IRS reporting. These are not tax deferred accounts.
Posted By: Soccer

Re: Interest on Funeral Trust CD - 07/08/20 12:16 PM

Agree with Randy, I used to handle a lot of these when I was in the branch world and in NY the interest is reported to the IRS under the person who is receiving the end service not the funeral home.