Tax Facts

924 / How is a non-negotiable savings certificate issued without discount by a Federal Reserve member bank valued for federal estate tax purposes when death occurs between interest periods?

Federal regulations provide that a time deposit, or the portion thereof requested, must be paid before maturity without a forfeiture of interest, where requested, upon the death of any owner of the time deposit funds.1 Accordingly, the savings certificate is valued at the principal amount plus unpaid interest attributable to the period between the last interest payment date preceding death and the date of death.2





1.    12 CFR § 204.2.

2.    Rev. Rul. 79-340, 1979-2 CB 320.

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