Tax question on mom's savings account

[gator75]

Hi everyone

My mom has a very large savings acc. up until nov 3rd of this year my dad and also asmyself where only on the account as benificerys sorry about sp,anyway she is the head on the acc the monies in the acc are from a large inheratance so with that beining said when it comes time to file taxes in the new year will it affect my taxes at all? I have my own family and my own income that i paty taxes on i'm married with a son. the only reason that i;m on their acc is in case something happens to them i have the abilty to get things done for them. I have been on their checking acc from the get go , but like i said i had no right as far as withdrawing money from her savings and now i do so please tell me if her decesion to put me on the acc as an owner will hurt me in anyway?

sorry about the long post. also as a side note there isn't the massive amount of money in the acc as there was at the start of this year.

 

[Cheshire Figment]

The key thing is it is her SSAN on the account and the 1099-INT will show all the income to her. If you are shown as "beneficiary" technically you do not have any authority on the account until her death, at whiuch time would become the owner of the account.

 

[gator75]

In case i didn't mention it i was until nov3rd 2010 a benificerary ONLY ,but as of nov i'm now also an owner on the account. I now have the abilty to withdraw money and also make any other transactions so that to the bank makes me an owner for 1 tax month of 2010. i just want to know if this decesion will affect my taxes at all? Like i said though she is head on the acc.

 

[Skatermom23]

This won't affect you at all. As long as the interest is reported under her SS number and she is primary, which it sounds as if she is.

 

[allyphoe]

You're fine - it's all taxable to your Mom.

If you had put money into the account, a portion of the interest would be taxable to you (and there would be some special reporting so that the IRS could match everything up). The SSN on the account controls the reporting, but it doesn't control the taxability, although in most situations, the taxability is the same as the reporting.

 

[Sadie22]

Hi everyone

My mom has a very large savings acc. up until nov 3rd of this year my dad and also asmyself where only on the account as benificerys sorry about sp,anyway she is the head on the acc the monies in the acc are from a large inheratance so with that beining said when it comes time to file taxes in the new year will it affect my taxes at all? I have my own family and my own income that i paty taxes on i'm married with a son. the only reason that i;m on their acc is in case something happens to them i have the abilty to get things done for them. I have been on their checking acc from the get go , but like i said i had no right as far as withdrawing money from her savings and now i do so please tell me if her decesion to put me on the acc as an owner will hurt me in anyway?

sorry about the long post. also as a side note there isn't the massive amount of money in the acc as there was at the start of this year.

Requirements may vary by state. When my my mother was still able to do so, she and I went to the bank where she completed their power of attorney form so that I could handle all of her accounts in the event of her incapacity. For example, her checks have her name and then mine followed by POA. I can write checks and pay her bills, but I am not an owner of the accounts. I am a "Payable on Death" beneficiary.

Have your mom and dad consulted an estate planning attorney?