Who owns that?

[mountaingirl]

What is the name of your state (only U.S. law)?

 

[justalayman]

try again. do not preview your post. That button is mislabeled. It is supposed to read: to delete your post, click here.

that didn't fit so they just labeled it: preview post


that's just a joke but that is how it actually does work

 

[Ohiogal]

What is the name of your state (only U.S. law)?

I own that. Unless someone else does. In which case I will fight you for it. Or fight JAL for it.

 

[Mass_Shyster]

I own that. Unless someone else does. In which case I will fight you for it. Or fight JAL for it.

All right - you own it. By the way, it's a toxic waste dump site.

 

[Ohiogal]

All right - you own it. By the way, it's a toxic waste dump site.

I retract my statement of ownership of the toxic waste dump site. I wanted to own the pretty mansion down the street.

 

[mountaingirl]

Attempt #2: who owns this?

Okay, I get it. Here's my original post. Hope everyone will give me some info:
My sister and I finally put our names on Mom’s banking accounts so we will have access to them if her health should suddenly get worse. Dad passed a few years ago. I already pay her bills online and write a few checks as for income tax. I was told by the banker that means my sister, my mother and I all now “own” these accounts, which means any one of us could drain them, but I’m not worried about that. I am worried about when my mother dies how do these accounts (about $180,000) work with her estate. Do these monies still go into her estate and do you know if there are inheritance or tax problems we have created here having our names on her accounts?
She has only a very simple direct will leaving all to her 4 children.

 

[tranquility]

Okay, I get it. Here's my original post. Hope everyone will give me some info:
My sister and I finally put our names on Mom’s banking accounts so we will have access to them if her health should suddenly get worse. Dad passed a few years ago. I already pay her bills online and write a few checks as for income tax. I was told by the banker that means my sister, my mother and I all now “own” these accounts, which means any one of us could drain them, but I’m not worried about that. I am worried about when my mother dies how do these accounts (about $180,000) work with her estate. Do these monies still go into her estate and do you know if there are inheritance or tax problems we have created here having our names on her accounts?
She has only a very simple direct will leaving all to her 4 children.

Because mom can withdraw the total amount of funds at any time, the IRS does not yet consider this a gift. Any amounts you withdraw are considered a gift. I'd be careful to not use your name on withdrawals, even if you intend to spend the money on mom. The account will be included in mom's estate for tax and creditor purposes unless you could prove you deposited 1/2 (Or, whatever percentage.) of the money yourself. If you would die first, it would be included in your estate; except for the fact mom could prove she deposited the entire amount.

The two major problems with this method of estate "planning" is that if you owe someone money (Either a normal creditor or because of you injuring someone.), the funds would be available to pay them from the account. Then, you would have a gift tax return if the amount was large enough as well. The other problem is that the money will go to the joint "owner", even if the will were to state differently on the death of the joint owner. (We presume will be mom.)

 

[anteater]

You probably all own the accounts with right of survivorship now, which means that when your mother passes away, your sister and you become the owners of the accounts due to the way that the accounts are titled. You can ask the bank to confirm that.

Assuming that there is a right of survivorship, the assets would not be subject to probate or the provisions of her will.

And, if that is not what your mother intended:

1) You, your sister, and your mother can ask the bank to transfer ownership back to your mother and then ask that you and your sister be given transaction privileges for the accounts. What is often called a "convenience user", or

2) Transfer the accounts back and have your mother execute a durable power of attorney (which is a good thing to do, anyway), or

3) When your mother passes away, disclaim the right of survivorship and allow the accounts to become assets of the probate estate.

 

[mountaingirl]

Thanks. That all makes sense - we will go forward to straighten this out. I am worried now that I have been paying for purchases for my mother by putting them on my credit card (since she had hers taken away from her - what a mess that was!) and then transferring her payback to my account online. What is the best way that she can pay me back for things I put on my credit card so it won't be subtracted from my inheritance (if there's anything left)?

 

[tranquility]

I don't see how what you're doing would subtract from inheritance. But, best option is a durable power of attorney for financial (And other matters too. But the durable power is to use the account.) and keep track of everything. With $180K in money accounts, I'd see an attorney as there is probably more assets out there too. A living trust with you or sister as trustee might work well also.

 

[LdiJ]

Thanks. That all makes sense - we will go forward to straighten this out. I am worried now that I have been paying for purchases for my mother by putting them on my credit card (since she had hers taken away from her - what a mess that was!) and then transferring her payback to my account online. What is the best way that she can pay me back for things I put on my credit card so it won't be subtracted from my inheritance (if there's anything left)?

Does she have a debit card for her account? Could you use that?

 

[mountaingirl]

Yes, we just got her a limited debit card. Perhaps I could increase the limit and use that online. It would be much easier than going through my accounts anyhow. Oh thanks, it is all becoming much more clear to me.

 

[ecmst12]

You should definitely mingle your funds with hers as little as possible.

 

[curb1]

Make the account a POD (pay on death) listing all four beneficiaries.