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Question for the Money Doctors

Question submitted on Dec 12, 2011.

Question

I''m having my name added to my mom''s accounts to avoid probate costs. How will that affect my income tax return? Will I be responsible for 1/2 of the monies or can she claim 100% on her tax return. Thank you

Answer

 the income would be reported to your mother and she would pay the tax, unless you withdraw any funds from the account.  In that case, there are also gift implications.  In addition, setting up a joint account, although it may avoid probate, does not remove the assets from your mother's estate.


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