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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.

-H
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