Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.
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.
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.
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.