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Financial Planning / Tax Strategies
|Subject: Re: UGTM transfer||Date: 12/4/1997 7:26 PM|
|Author: TMFTaxes||Number: 822 of 125441|
<<Several years ago I opened a Unified Gift To Minors mutual fund account for my son then about 15
years old. This year (he is 23 now), for reasons I wont go into, he decided he no longer wanted the
account. He signed the transfer papers and all the funds were transferred to a new joint account in
my and my wife's name. The original investment was $1200. It has since grown to about $4000.
About $200 have been paid in capital gains declared over the last 8 years. My question is: Do I
owe any tax due to the transfer this year or only when I sell it a few years from now?>>
Well, Rusty, without and additional information, it appears that your son made a gift to you in the amount of about $4k. And since this gift is less than $10k, there is no tax ramifications associated with the gift. The funds are not deductible by your son, and not taxable to you.
Any interest/dividends/gains realized in prior years should have been reported on your son's tax return at the time they were realized. If there are appreciated assets in the account, then you will be responsible for the taxes on the gains when the appreciated assets are sold.
Hope this helps..
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