Should I give back $200k that I didn't know I had?

[tnitsuj]

Brief Synopsis: I don't really ever talk to my partents ever since I moved out which was after high school many years ago, we are not exactly a tight family. Today I get an e-mail from my parents saying that they are buying thier dream house 1+ million dollars and are gathering funds. They apparently have an account they created for me when I was born that now has over 200k in it and wanted to know if I would release it to them to go towards the house.

I am inclined to do so #1 it really is thier money #2 I didn't even know I had it in my name.

 

[thereds]

#1

Their still your blood. If they need it, help 'em out.

 

[amcdonald]

I'd give it back out of parental respect, but it sounds like you have no legal obligation

 

[notfred]

What's the point of creating a savings account for your kid and then spending it on a house he won't even live in? Why create it in the first place?

 

[iamwiz82]

i'd blow the $200k and then tell them to have the account. They look at the account balance and hilarity insues. :beer:

 

[EXman]

I think your parents started a beautiful idea and turned it into a selfish joke. I hope you are kidding. :disgust:

and no one needs to take 200k meant for their kid and keep it for a +1 million $ house can we say materialistic and jerks. man people are posting fast!

 

[tnitsuj]

I don't even know if it parental respect. It really is thier money that they have been putting aside all these years...I think they originally wanted me to go to med school with it or some such bs. I couldn't have ended up farther away from that ideal if I had tried.

I am going to have them fax over the form now. Let them have it.

 

[Zim Hosein]

Originally posted by: thereds
#1

Their still your blood. If they need it, help 'em out.

 

[FeathersMcGraw]

I am not an accountant, but if those funds are in your name and you are no longer a dependent, they're going to wind up paying taxes on that money even if you agree to sign it over in its entirety. I believe you can only gift $10K per year before it's susceptible to gift taxes.

 

[bolinger]

Give them the 200k, minus a transfer fee (10% should do).

 

[Spac3d]

Originally posted by: amcdonald
I'd give it back out of parental respect, but it sounds like you have no legal obligation

 

[Electric Amish]

Originally posted by: bolinger
Give them the 200k, minus a transfer fee (10% should do).

Good call.

 

[BigSmooth]

Originally posted by: thereds
#1

Their still your blood. If they need it, help 'em out.

I wouldn't say "buying a million dollar dream house" is high on the list of "needs", though.

 

[Gulzakar]

 

[DurocShark]

Originally posted by: FeathersMcGraw
I am not an accountant, but if those funds are in your name and you are no longer a dependent, they're going to wind up paying taxes on that money even if you agree to sign it over in its entirety. I believe you can only gift $10K per year before it's susceptible to gift taxes.

Yep. But a parent can give a one-time gift of like 500k (IIRC) to the child. I doubt it can go the other way however...

Speak to an accountant before you do it. It may hurt YOU as much as them because that $200k may suddenly be "income" to the IRS. :disgust:

 

[loup garou]

Originally posted by: notfred
What's the point of creating a savings account for your kid and then spending it on a house he won't even live in? Why create it in the first place?

Seems kind of selfish to me?!

 

[Ryan]

Originally posted by: Spac3d

Originally posted by: amcdonald I'd give it back out of parental respect, but it sounds like you have no legal obligation

No, I would have to talk to them about it before it did so. They created the account for YOU, but now after 20 years of saving, they happen to have the opportunity to purchase a "dream house" and now they want it all back. You're parents SUCK.

 

[thereds]

Originally posted by: BigSmooth

Originally posted by: thereds
#1

Their still your blood. If they need it, help 'em out.

I wouldn't say "buying a million dollar dream house" is high on the list of "needs", though.

True. But what if say it was one of their life long dreams to have one of those houses?

 

[tnitsuj]

Originally posted by: DurocShark

Originally posted by: FeathersMcGraw
I am not an accountant, but if those funds are in your name and you are no longer a dependent, they're going to wind up paying taxes on that money even if you agree to sign it over in its entirety. I believe you can only gift $10K per year before it's susceptible to gift taxes.

Yep. But a parent can give a one-time gift of like 500k (IIRC) to the child. I doubt it can go the other way however...

Speak to an accountant before you do it. It may hurt YOU as much as them because that $200k may suddenly be "income" to the IRS. :disgust:

I really don't know how that all works. It is something called a custodial trust account, and it has to be dealt with now because I am 25. (convenient time to buy a house). I am sure they have lawyers and accountants to work out all that crap.

 

[Binar]

that proves how much your parents really love you.

1.They didn't tell you about the money over the years
2.they want to use your fund for their home

you have 2 choices:
1 if you give them the money you'll be so sick of them after this that you'll never want to see them again
2 if you wannna keep the money they will be so pissed that they will never wanna see you again

is up to you

I'd take the money if they were assholes before now they will suffer.

 

[EXman]

#1

Their still your blood. If they need it, help 'em out.

#2

they are your Blood they stick to thier original plan and stop being selfish. They choose their dream house over you then they don't desrve it anyhow...

 

[Farbio]

i would talk to them about it first of all

personally, i would be incredibly insulted if they only had the decency to email you about the money - that's a slap in the face on such a big deal

 

[vi edit]

Tell them they can have back the principal. You'll keep the interest.

 

[0roo0roo]

if you want to be in the will... haha

 

[mpitts]

I would tell them no.

Then I would ask for MY account information so *I* could decide what is best to do with the money.