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mattgg writes (in part):

My father has opened a joint checking account with $5,000 currently as a balance....

My father receives and inheritance 6 months after the account was opened. He then deposits the $800,000 into the joint account.

Would this be considered a gift eventhough the account was already open, and is in his name?

I reply:

If memory serves, the transfer of money into a joint checking account (unlike a joint brokerage account) is not treated as a completed gift. But why put that much money in a checking account? Even in a passbook savings account at a paltry 2% annual interest rate, we're talking about more than $400 per day in interest. If your father wants to keep the money liquid, have him put it in a money market account.

One further point. Remember that the FDIC insurance limit is only $100,000 per depositor. So if he really wants to make sure that he's protected by the federal government (I doubt it's a concern, but it's his money, so it's his decision), he will need to split it among eight different banks. --Bob
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