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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 9698
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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What are the tax implications on a joint account with the rights

Customer Question

What are the tax implications on a joint account with the rights of survivorship?
Also, if the monies in that account are disbursed to other surviving children, what are their tax responsibilities?
Submitted: 5 months ago.
Category: Tax
Expert:  Lane replied 5 months ago.
Hi,...On a joint account with the rights of survivorship (JTWROS), the other owners just "absorb" ownership equally....Say there were three joint owners and one passed, the two remaining owners would automatically own 50%. ...This is not a taxable event....Then if the remaining two owners (in this example) want to gift to their own children (or others) as long as no more than 14,000 is not given to any "giftee" in a year, there would be no gift tax form....From a property law perspective, both owners own all and make decisions independently. But from a tax law perspective, each owner owns 50%
Expert:  Lane replied 5 months ago.
And even if more than 14,000 is given to one person ... because the lifetime exemption on gifts is $5,450,000, the form 709 is just an informational form ... used to track AGAINST that lifetime exclusion
Expert:  Lane replied 5 months ago.
Under federal gift tax law, gifts of property that are owned as JTWROS are treated as a gift of 50% of that property by each owner to the donee (receiver of the gift)...I hope this has helped....Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit”)… I will receive no crediting for the work here, if you do not rate....Thank you!Lane……I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986
Expert:  Lane replied 5 months ago.
Did you see my answer?