Message Font: Serif | Sans-Serif
No. of Recommendations: 0

My dad wants to give me $10,000, which I understand is a non-taxable gift. However, he wants me to invest it and give him the profits until his death. I understand that I will be responsible for the taxes on the investment. Then upon his death, he want the money then returned to the executator of his will to be distributed amoung the children. This sounds like a tax night mare to me. If I die before he does, then that money becomes a part of my estate, right? Got any suggestions? Thanks

Why not just invest the money in your father's name? Your father could just give you access to the account to invest the money as needed.

You are correct that if you die, and the account is in your name, then it's part of your estate. You can assign beneficiaries to broker accounts but I don't know when in the process of death/payment that takes effect.

Sounds easier if you just manage the money in an account in your father's name. He's responsible for taxes, he receives profits, and when he dies then it will distributed according to his will.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.