Last year my dad added me to all of his bank accounts as a co-owner. He passed away last week. His will states that his assets are to be split equally between my sister and myself leaving my brother nothing (that's a long story). The question that I have is do I have to claim the money that is in the accounts with me as a co-owner as income for my 2007 tax return? Will my sister and I have to claim it as income/inheritance on our 2008 returns? My sister is listed as the beneficiary on the life insurance policy (I wasn't born when my parents took it out). Is all of that income or just the amount left over after funeral expenses? We're not talking about a huge amount of money. I think that the life insurance was about $16,000 with funeral expenses around $9,000. The bank accounts are about $44,000.