- quote -

There is no family exemption permitted against a joint bank
account and if there is just the joint account, there would
be no administration expenses either. So your sole expense
against the bank account would be the funeral expenses and
any final bills that you pay from the account.

Linda

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ntlaf[at]yahoo.com (Bigg-T) wrote:

- quote -

Correct, and if you transfer the account back into her name alone, you
will pay 4.5% of $50,000 at her death.

Which is better? You do the math.

There is one disadvantage to joint ownership, which is that
if you were to predecease your mother, she would have to pay
inheritance tax on the $25,000 she gets back from you
through the joint account.

But if you're willing to run that risk, the joint account
makes sense.

**Dan Evans
**I post information, not advice.

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antlaf[at]yahoo.com (Bigg-T) writes:

- quote -

Of course, she could gift you her share. However, if you
were to die first, she'd then have to pay tax on the entire
amount. If she were to pass within 2 years (perhaps 1 year.
I don't have my tools) of having gifted you, it would revert
back to her and be taxed as if the gift had never been made.
In any case, Assuming that represents her entire estate.you
wouldn't have to pay tax on the entire $25K, if that's what
it is, after deductions for burial expenses, possible family
exemptions,administration, etc.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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My Mother is 80 yrs old. She has approx. $ 50,000 in a joint
account with me. (has been joint over 6 yrs.). She wishes to
leave the money to me. Should I be joint on the account or
should I get removed from that account and only have power
of attorney over the account. What will minimze the Pa
inheritance or negate it. The way the account is set up now
-I believe that I will have to pay the 4.5% on the $25,000 I
will gain upon her death.

Please advise. Thank You!

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