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Author: greet Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121333  
Subject: Joint Account w/ Expired Relative. Date: 3/18/2000 9:50 PM
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No, I didn't set it up that way; she was alive at the time.
Had an account with my mother, mostly for convenience and bill-paying if she reached a point where she couldn't handle her own affairs. Well, she reached that point and subsequently passed away. I went to the bank and withdrew most, but not all, of the balance. Now that I have my tax form filled out I'm wondering if the IRS will come and get me. For tax purposes, the account was listed under her name first. She lived entirely on Social Security, and never made enough that she had to file. I'm not kidding, she lived on less than $9000/year, but had this savings account of $10000 or so.
The source of the money was mostly me, when I paid room and board to her in my earlier years.
So now most of the money is out of that account and frankly spent on paying off my credit card debt and other not-very-exciting-things like house repairs.
The question is: am I doomed? Will the IRS set upon me like ducks on a junebug?
Please don't scare me too bad! Break it to me gently...
Thanks,
Margaret. (Packing in case I must flee the country.)
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Author: hghcpa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32105 of 121333
Subject: Re: Joint Account w/ Expired Relative. Date: 3/19/2000 8:40 AM
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No, I didn't set it up that way; she was alive at the time.
Had an account with my mother, mostly for convenience and bill-paying if she reached a point where she couldn't handle her own affairs. Well, she reached that point and subsequently passed away. I went to the bank and withdrew most, but not all, of the balance. Now that I have my tax form filled out I'm wondering if the IRS will come and get me. For tax purposes, the account was listed under her name first. She lived entirely on Social Security, and never made enough that she had to file. I'm not kidding, she lived on less than $9000/year, but had this savings account of $10000 or so.
The source of the money was mostly me, when I paid room and board to her in my earlier years.
So now most of the money is out of that account and frankly spent on paying off my credit card debt and other not-very-exciting-things like house repairs.
The question is: am I doomed? Will the IRS set upon me like ducks on a junebug?
Please don't scare me too bad! Break it to me gently...
Thanks,
Margaret. (Packing in case I must flee the country.)

==============

It sounds like the account had a "right of survivorship" option whereby at her death you the account became yours.

If the account was set up otherwise it would have either been totally or partially "frozen" by the bank until her willwas probated.

Assuming option one to be the case - you should not have to worry about any tax consequences other than reporting the income earned on the account on your personal return.

Pete

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Author: RiverCityFool Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32115 of 121333
Subject: Re: Joint Account w/ Expired Relative. Date: 3/19/2000 12:40 PM
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Well, you need to get advice on a couple of matters -- taxes, yes, but more importantly, probate.

Did your mom have a will? Did she leave all her estate to you? Has the estate gone through probate? Until it has, you really should have left the money there, except for amounts needed for funeral costs, until probate was done.

I really don't remember how we claimed our share of my mom's estate a couple years ago, but I don't recall it having a big impact on our taxes.



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Author: gurdison Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32137 of 121333
Subject: Re: Joint Account w/ Expired Relative. Date: 3/19/2000 6:14 PM
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<Well, you need to get advice on a couple of matters -- taxes, yes, but more importantly, probate.

Did your mom have a will? Did she leave all her estate to you? Has the estate gone through probate? Until it has, you really should have left the money there, except for amounts needed for funeral costs, until probate was done.>

Was the bank (and Social Security) notified of the death? If the account you drained was the same one where S.Sec checks were deposited, there could be an issue if extra S.S.funds were deposited. As long as there are no other beneficiaries all non social security monies should pass to you anyway. If there are others, you may have to "prove" that the original funds were yours. You should pay a visit to your county clerks office. They can provide you with a lot of helpful information to resolve the issue. I agree with the previous poster that you really should have left the funds alone until this was done.

BRG



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