Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I live in Arizona and my wife will retire in 18 months. She

is currently in a defined...
I live in Arizona and my wife will retire in 18 months. She is currently in a defined benefit pension which allows her to name either myself or our 28 year old daughter as beneficiary in the event of her death. My question is this; If she were to name our daughter as beneficiary and she were to proceed me in death, if the pension was direct deposited into a joint account with me being a signer on the account with my daughters tax ID number, is there a way for me to be liable for the taxes and access the funds? I understand the $13,000.00 annual gift exemption, but if it were to exceed that, are there mechanisms which would allow for it? Thanks
Mark
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
7/9/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,291
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

NPVAdvisor :

He mark

NPVAdvisor :

(Hi)

NPVAdvisor :

Lets take this one at a time.

NPVAdvisor :

There are several different ways to take a survivor benefit on a pension .

Customer:

ok

NPVAdvisor :

Do you know if it's a limp sum payout, or if this is a joint and survivor annuity where there will e a monthly payout for the curvovir?

NPVAdvisor :

Sorry "Lump" sum

Customer:

monthly payment

Customer:

beneficiary will need to designated (either me or our daughter) I want access to the funds if there is a way.

NPVAdvisor :

OK, then the survivor will get a 1099 every year for any amount that will be taxable, regardless of where the money "lands" so to speak

Customer:

Correct

NPVAdvisor :

All your daughter has to do is have it deposited into s joint account

NPVAdvisor :

So your daughter, as beneficiary, can have it put anywhere she wishes

NPVAdvisor :

even hav a check sent to the mail bos

NPVAdvisor :

What she gives to you is her business, legally

Customer:

Isn't there a limit on what she can give away?

NPVAdvisor :

and as you mention if she gives you more than 14000 then she;ll have to file an informational gift tax form ... but she wouldn't have to pay gift taxes until the accumulated amounts go over 5,250,000

NPVAdvisor :

there is an exemption on gift (and the big gift, estate) taxes of 5,250,000 and it's going up every year now

NPVAdvisor :

the gift tax form (IRS Form 709) is simply to track against that exemption

NPVAdvisor :

and if the yearly amount is under 14000 there's not form at all

Customer:

Am I correct in believing that I could write checks on the joint account?

NPVAdvisor :

Sure, If you set it us as a joint ownership, both of you could write checks

NPVAdvisor :

sorry for the typos - doing this on a device ... trying to get back tp the computer now

NPVAdvisor :

But yes, also... in a joint account...

Customer:

and if the amount exceeded 14,000.00 in a year it just goes against her total lifetime exemption?

NPVAdvisor :

if one of you pass away, it becomes the other's money

NPVAdvisor :

Joint Tenneacy with right of survivorship is the full name

NPVAdvisor :

Yes, lifetime exemption

Customer:

I understand. that's why I am trying to set this up as she likely will out live me by several decades.

NPVAdvisor :

Yes, just to put numbers onit, if she gave you 3,000,000 over her lifetime and died today (again the amount goes up every year) her estate could still be worth 2,250,000 without estate taxes against the estate at her passing

NPVAdvisor :

And we now have something called portability, where the amount of the gift not used bu one spouse can be passed to the surviving spouse, so if she is married that number (ir becomes marreid) and ity were today, that number is XXXXX over 10,000,000

Customer:

I just want to make sure that if she opens up an account in her name with me as a signer, I pay her tax liability on an annual basis, have access to the funds and upon my death she and her account just continue uninterrupted?

NPVAdvisor :

Sorry, should have said the amount of the EXEMPTION

NPVAdvisor :

that's correct

NPVAdvisor :

Joint account, and be sur they set it up as (and this IS the default on joint accounts) WITH RIGHTS OF SURVIVORSHIP[

NPVAdvisor :

jtwros

Customer:

and providing the taxes are paid and any excess of 13,000.00 per year, the IRS is notified at tax time all should be good with the IRS?

NPVAdvisor :

OK, again the taxes on the income stream will be taxed to her (if it's taxable) She will get a 1099

NPVAdvisor :

Then every time she makes a deposit into the joint account, she is gifting you 1/2 of that money

NPVAdvisor :

You will both have the right to sign (she can waive it or not use it

NPVAdvisor :

then if you give her the money to ay the taxes on that income stream, you actually are giving a gift to her

NPVAdvisor :

and finally, the interest that the account itself bears will be 1/2 yours and 1/2/ hers

Customer:

ok thanks

NPVAdvisor :

Your welcome

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,291
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now

Thanks Mark

If you'd like more, please let me know.

By the way, if your daughter is the person listed first on the account, and is the person who signs the W-9 form, the way most banks do it, she will be the on getting the 1099-int.

I noticed you only gave me an OK feedback, if there's more I can do your you or you have additional questions on this, let me know.


Lane


Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,291
13,291 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Years ago I received a federal tax id number. but never used
years ago I received a federal tax id number. but never used it. would it still be active … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,291 satisfied customers
I paid the irs about 99,000 in back taxes and interest in
I paid the irs about 99,000 in back taxes and interest in May,2017, can I apply to get the interest back since I refinanced my home and have no savings,im 74 years old and work . … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
525 satisfied customers
Cannot find my 2018 form ssa-1099 benefits statement. how to
cannot find my 2018 form ssa-1099 benefits statement. how to get another? … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
85 satisfied customers
Cannot find my 2018 form ssa-1099 benefits statement. how to
cannot find my 2018 form ssa-1099 benefits statement. how to get another? … read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
64 satisfied customers
What are the forms for reporting Rental Income to the IRS on
What are the forms for reporting Rental Income to the IRS on foreign properties - we collect each month? Is this filed separately from our personal returns?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
Reporting pension and social security income on both Forms
Reporting pension and social security income on both Forms 1040 and 1041? … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,291 satisfied customers
My withholding exceeds my tax liability for each of the the
My withholding exceeds my tax liability for each of the the first three quarters of 2017. However, in December 2017 I received a taxable gift of $78,000 from which nothing was withheld. I know this mu… read more
abci168
abci168
Principal
27 satisfied customers
Is Gift Tax form 709 filed like a return by April 15th? Or,
is Gift Tax form 709 filed like a return by April 15th ? Or, is it filed the year the gift was given? thank you … read more
abci168
abci168
Principal
27 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My father made me his beneficiary using a benefit on death
My father made me his beneficiary using a benefit on death account. My understanding is this avoids any tax liability for me. I need to distribute the funds among my siblings. I expect the amount to b… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,291 satisfied customers
What are our tax liabilities when we gift a large sum of
What are our tax liabilities when we gift a large sum of money and a house to our kids? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
One of our contractors gave us the wrong tax id number for
one of our contractors gave us the wrong tax id number for 2015 and 2016 and they asking for us to correct. What form do we uses? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
From a tax liability perspective, what are the differences
From a tax liability perspective, what are the differences between filing taxes from a trust versus a personal income tax filing ?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
Regarding Federal tax income Form 4952, should I expect my
Regarding Federal tax income Form 4952, should I expect my client to provide me a form to help me fill out line 1 for "investment interest expense paid"? And if so what is the form number?… read more
abci168
abci168
Principal
27 satisfied customers
I received a 1099-Int with an amount in box 11, Bond
I received a 1099-Int with an amount in box 11, Bond Premium, covered lots. Furthermore, there is an amount in box 1, Interest Income. Would I include the Box 11 amount in interest income or subtract … read more
abci168
abci168
Principal
27 satisfied customers
How do I report this? 1099 INT – Line 8 – Tax Exempt
How do I report this? 1099 INT – Line 8 – Tax Exempt Interest = 6,000 1099 INT – Line 13-Bond Premium Tax Exempt=1,500 1099 (Right Hand Side) Adjustments to Interest-Bond Premium Tax Exempt=1,100 Cash… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
1099 Int - What is the difference between 1099 int Line 13
1099 Int - What is the difference between 1099 int Line 13 bond Premium on Tax Exempt says 30,000 and ajustments to interrest portion which says adjustment to bond premium tax exempt $10,000?… read more
abci168
abci168
Principal
27 satisfied customers
Tax question - Form 1099, Line 8 Tax Exempt Interest
Tax question - Form 1099 , Line 8 Tax Exempt Interest reflects $500; OID 1099 is 0. Under heading Detail for tax exempt interest it says tax exempt interest is $300. Under Detail for Tax Exempt OID it… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x