disneysteve
Thinks s/he gets paid by the post
- Joined
- Feb 10, 2021
- Messages
- 2,375
I'm curious to hear your thoughts.
A family member, let's call her A, recently died. She and her husband, E, divorced years ago but continued to live together as a couple until her death (long story irrelevant to the topic). Everyone considered them husband and wife even though they were no longer legally married.
A didn't have a will and had never set up any of her financial accounts to be paid to E upon her death. As a result, her mother, M, is considered under the law to be her next of kin and inherits her funds. All of us, including M, agree that the money rightfully belongs to E.
The question became how to have M transfer the money to E with no tax implications. I do not know how much money is involved but let's assume it at least exceeds the annual gift tax exemption.
What M's financial advisor suggested is for her to open a joint checking account with E but hand over the checkbook and debit card to him so that he has full access to the funds. Her name will be on the account but it will effectively be his money.
None of us really like this method because we feel it should be solely in E's name so that there's no possible way M can screw with it.
1. Is it okay to do it this way?
2. If they do, is there any reason E can't then turn around and withdraw the money and close the account and open a solo account in his name only?
3. Is there some better way this should be handled?
A family member, let's call her A, recently died. She and her husband, E, divorced years ago but continued to live together as a couple until her death (long story irrelevant to the topic). Everyone considered them husband and wife even though they were no longer legally married.
A didn't have a will and had never set up any of her financial accounts to be paid to E upon her death. As a result, her mother, M, is considered under the law to be her next of kin and inherits her funds. All of us, including M, agree that the money rightfully belongs to E.
The question became how to have M transfer the money to E with no tax implications. I do not know how much money is involved but let's assume it at least exceeds the annual gift tax exemption.
What M's financial advisor suggested is for her to open a joint checking account with E but hand over the checkbook and debit card to him so that he has full access to the funds. Her name will be on the account but it will effectively be his money.
None of us really like this method because we feel it should be solely in E's name so that there's no possible way M can screw with it.
1. Is it okay to do it this way?
2. If they do, is there any reason E can't then turn around and withdraw the money and close the account and open a solo account in his name only?
3. Is there some better way this should be handled?