Tax question just making sure here. . .

[episodic]

If my name is on a joint checking account with a relative and they pass away - and I withdraw a portion of the money, paying funeral expenses, then a portion for myself, giving the rest to relatives - since the money was technically always mine - is there a tax implication?

Thanks.

 

[Alone]

It will still count towards his estate in regards to tax.

 

[rudeguy]

I never understood why dead people have to pay taxes....

 

[Alone]

I never understood why dead people have to pay taxes....

Why not? They're in no position to argue.

Free money!

 

[rudeguy]

Why not? They're in no position to argue.

Free money!

LMAO!

So true. I had a boss once who would have called that "low hanging fruit".

 

[episodic]

It will still count towards his estate in regards to tax.

So since the federal estate tax is in limbo and not in effect this year, no estate tax? My state does not have an estate tax either. The total value of the estate was well under 70,000 - and the portion I received was only a tiny fraction of that. . . the rest went to other heirs.

 

[Alone]

So what's your question then? If his estate isn't being taxed, his assets aren't held, and your name is on the account, then the money is yours do use as you please.

 

[episodic]

woops dp

 

[episodic]

So what's your question then? If his estate isn't being taxed, his assets aren't held, and your name is on the account, then the money is yours do use as you please.

I'm not experienced at this at all. Basically, I'm just trying to make sure my interpretations are indeed correct.

Basically my brother was executor of the estate. The estate basically involved a house and a car. He got both. He is living there now (he is disabled).

I have no problem with this.

There was a checking account of which I kept 2/3 as a joint tenant, and gave him 1/3 (on top of his other inheritance). The amount I gave was well under the 'gift tax' amount. The amount I recieved was under it as well.

Basically, I'm just wondering if it is a good idea to touch this money yet or not.

It is in my possession, I've just been 'holding' it out of fear basically that something is going to happen I don't understand.

 

[Alone]

If any and all debts have been paid out of the estate and the will has been handled, then you should be in the clear.

 

[episodic]

If any and all debts have been paid out of the estate and the will has been handled, then you should be in the clear.

From what I've read joint tenancy checking accounts with survivorship fall outside the scope of the estate.


So basically, if she owed a credit card company that'd have to come from the 'estate' to which there was only a home and an old car - the home was set up to automatically be placed in my brother's name without probate - and the car - well - it isn't worth much.

So given all of that, should be ok?

 

[Alone]

I'm pretty sure since the account immediately became yours at the time of her death, and there's nothing else to come of it. That's the gist of my opinion on this, so take it with a grain of salt.