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If he is listed as the OWNER of the account with the bank, then the CURRENT implications will be that he will get a 1099-int at year end and will need to report the interest on his tax return
Ok that makes sense.
BUt if he is already the qowner on the account, then when your grandmother passes, that will not be a taxable event
The only possible CURRENT issue would be whan the ownership passed from your grandmother to him, it wold technically be a gift
but the lifetime exclusion on gift taxes is $5,120,000, so unless she has gifted thos kinds of amounts there is no issue there either
Yes for sure. Does he need to file a gift though as the receiver?
Actually gift and estate taxes (estate transfers are really the FINAL gift) are borne by the giver ...
gifts are excluded from income for the receiver
Okay. Seems like he is okay then for the most part..
If she is nowhere near the 5 million dollar limit then there's really nothing that needs to be done ... although IRS likes for any transfers above 14,000 per person per year to file a gift tax form so that they can track it against that $5,250,000 lifetime exclusion
understood. Thanks for the info..
Yes, HE has to do nothing at all ... again, if the gift is over 14,000 there's a form Form 709 that SHE can file ... but again if she's nowhere near that 5 million limit then there's really nothing to track
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Okay will do. Thanks