How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10142
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

My friend is receiving a settlement of 1.5-2.5 million

Customer Question

My friend is receiving a settlement of 1.5-2.5 million dollars and she wants to put it in my name so her family doesn't know about it. How much in taxes will I have to pay on the money per year? Including Federal, state etc.
My friend was told that she wouldn't have to pay taxes on her court case settlement. Would I have to pay yearly taxes if she put the money in my bank account? If so, how much and to whom?
Would I have any other liabilities from this transaction?
What if I put some of the money into college funds for the children?
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Hi,

...

Your friend likely WILL be taxed unless this is a personal injury settlement, OR other injury arising out of injury, sickness, or wrongful death

...

Regardless of that .. Your tax will only be the tax that arises from interest or dividends. The bank will send you a 1099-int in January of each year for the interest the account earns.