Question for the Money Doctors
Question submitted on Sep 8, 2011.
QuestionMy Dad recently passed away. My name was also on his bank account so when he passed, I went to the bank and put all of the money in my name. (I had to go to the court house first and let them record the amount of money in the bank because of tax purposes) I have recently sold his house and car, and the attorney put that money in the checking account that is just in my name. My question is this. Should the house and car money be put into a seperate estate accounts so that I am not the one that is going to have to show all this as income? I have 3 sibblings that this will all be divided with in the end...per my Dad''s will.
Hi - you should not be taxed on the sale of any property unless something like the house was also in your name. In any case, I would keep all the cash for the Estate in a separate bank account. Doing this will help keep the accounting straight in case there are any questions by your siblings down the road. Good luck!
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