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Author: RoseSmeller One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124937  
Subject: Re: Large JTWROS Account Date: 8/21/2003 11:11 PM
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Since your father put all the assets into the account, and assuming you and your brother don't take anything out while your father is alive, this is treated like an inheritance for tax purposes. Your father is responsible for all the dividend and capital gains taxes now. There is no gift tax. When your father passes, you may owe estate taxes depending on the total amount of his estate and the exemption amount in that year - it's currently one million but scheduled to go up, disappear for one year entirely, then go back down again, subject to the whims of future Congresses. You'll also get a stepped up basis for the stocks - again assuming Congress doesn't change the current rule.

My only suggestion for getting your father to get some professional estate planning advice is to start collecting and passing on horror stories about people who didn't.
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