topic Re: I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000? in Get your taxes done using TurboTax

I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?

djr1003 — Mon, 19 Oct 2020 17:58:35 GMT

there is a will that shows his wishes.

Re: I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?

Anonymous_ — Mon, 19 Oct 2020 18:11:02 GMT

@djr1003 wrote:
there is a will that shows his wishes.

In that case, you should consult with local legal counsel (see link below).

https://www.avvo.com/

This is especially so if the account was a JTWROS account (joint tenancy with rights of survivorship).

Re: I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?

fanfare — Wed, 21 Oct 2020 02:45:48 GMT

A bequest in a Will is not a gift.

An inheritance other than a tax-deferred account is not taxable.

If you are the executor just distribute the money after settling the debt of the estate.

Re: I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?

Anonymous_ — Wed, 21 Oct 2020 12:59:27 GMT

@fanfare wrote:

A bequest in a Will is not a gift.

Property held as JTWROS passes by operation of law upon death of one of the joint tenants, outside of the will which would have no effect as a result.

Re: I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?

Carl — Wed, 21 Oct 2020 13:44:01 GMT

I have a joint checking account with my deceased father. He wants the account split between 7 heirs.

Assuming there is an actual will involved here, this could be a mess.

With a joint account, 50% of the balance is yours free and not clear not subject to any split. Additionally, if the account was set up as JTWROS (Joint Tenancy With Right Of Survivorship) then all of the money is yours outside of the will, and the will does not override that.

I foresee family problems here, so you should seek legal advice ASAP. Legally speaking the will must be followed to the letter. However, those things such as a bank account that already has things set up with something like JTWROS or life insurance with a designated beneficiary override the will, meaning that part of the will can't be legally enforced in most cases. Seek legal advice.

Note that inherited property is NOT a gift.

Re: I have a joint checking account with my deceased father. He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?

Anonymous_ — Wed, 21 Oct 2020 15:15:43 GMT

"He wants the account split between 7 heirs. Is there a gift tax if it is greater than $15,000?"

With respect to gifts, and as an addendum, a gift tax return would be required if the value (dollar amount) of the gift exceeded $15,000 to any one donee.

See https://www.irs.gov/instructions/i709#idm140554828343488