luntz11230[at]aol.com (Luntz11230) wrote:

- quote -

I assume you are talking about an account in joint tenancy
with rights of survivorship.

It doesn't matter how long ago your mother owned it, and it
doesn't matter how much it's increased since she put the
property into the account. If it all came from her
originally, it's all hers for the standpoint of estate tax.

This is mandated by section 2040 of the IRC, which you can
see at http://www4.law.cornell.edu/uscode/26/2040.html

I don't find a similar provision with respect to gift tax.
However the ultimate effect will probably be the same in any
case.

Stu

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Luntz11230" <luntz11230[at]aol.com> wrote

- quote -

If the account grew over the years simply by interest but
all of the money put into the account was your mother's
(which is probably the case), then the gift is $100,000.
Putting another's name on a bank account "for convenience"
doesn't count as a gift until money is actually withdrawn
from the account by the non original owner, which is what
you have now done. It sound like it is really HER money
and, yes, a gift tax return IS required.

Vida Freeman, EA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Generally when a joint account consists of mixed funds the
approach is to treat it as 50/50 unless there is clear
information to the contrary. Ergo $50,000 is the probable
answer inyour case.

Legal issues aside, for people whose assets are below the
gift/estate tax thresholds the use of a gift tax return is a
rather moot issue and one that I would leave to Mom's
qualified advisor.

If Mom's need for Medicaid is within a 3 year horizon I
would think thru my steps with counsel before I committed
stuff to paper or action lest she run afoul of the rather
tricky Medicaid lookback rules.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

My Mother and I recently transfered from our joint account
to my single account more than $11,000 (let's say $100,000).
(It was recommended to us so that she may eventually become
medicaid eligible). I beleive that she needs to fill out a
gift tax form.

The question:
Is the gift $100,000. or is it $50,000??? We've had the
joint account for over 15 years. Although the original was
all my mother's, the total amount of the account had grown
over the years.

Thanks in advance for your comments. Also where in the
offical tax info can I get an answer to this question.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->