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I have my bank accounts in my name with my daughter as an OR…

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I have my bank...

I have my bank accounts in my name with my daughter as an OR a/c holder. Will the funds go to her upon my death

Accountant's Assistant: What state are you in? It matters because laws vary by location.

WV

Accountant's Assistant: Has anything been filed or reported?

I don't understand the question

Submitted: 4 months ago.Category: Tax
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1/2/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,839
Experience: Taxes, Immigration, Labor Relations
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If you want your daughter to have full access to your funds in the bank account - there are several ways.

- you may have a joint bank account - with both names listed

- you may add your daughter as an authorized user

- you may add a POD clause on your account - "paid on death" with your daughter's name listed.

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Customer reply replied 4 months ago
where do I obtain a POD and does that protect her if I have to nursing home
Customer reply replied 4 months ago
No I have paid to get my answers
Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,818
Experience: 15years with H & R Block. Divisional leader, Instructor
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You requested a new expert.

A POD is usually completed at your bank. If you let them know you want your daughter to be "Paid On Death" then any account you list as the beneficiary will be turned over to her upon your death.

If you go into a nursing home and she is listed as a joint account , she would have access to the funds but your liability for any payments may also place at least half under your own creditors. Is that what you were wondering?

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Customer reply replied 4 months ago
Somewhat but does an OR a/c take care to protect her. I have no debts
Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago

No it does not protect her. She has access to the funds and the accounts are open for her to withdrawals but that is all.

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Customer reply replied 4 months ago
the nursing home would have to be paid out of the funds.
Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago

The funds could not evade the nursing home if they requested payment from you.

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Tax Professional: Barbara, Enrolled Agent replied 4 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,993
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Different expert here - my name is ***** ***** I have a different answer.

Most joint bank accounts automatically provide for right of survivorship. This means one co-owner dies, the other co-owner will automatically be the sole owner of the account upon presentation to the bank of the deceased co-owner's death certificate.

You can very easily confirm this by contacting the bank in which the account is located.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 4 months ago
Thanks Barbara
The a/c is set up as an "OR" . Can she withdraw the money before my death and not have to report it upon my death
Tax Professional: Barbara, Enrolled Agent replied 4 months ago

She can withdraw the money before or after your death without having to report it either way. She is a co-owner of the account, so the money is not considered a gift or an inheritance.

I just went through the exact same situation with my mom when she passed away. She had me on her accounts. All I had to do was present her death certificate to the banks, and the money was given to me.

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Customer reply replied 4 months ago
Tks so much but was your Mom in a nursing home? I'm not but aging fast. Such confusion about nursing homes
Tax Professional: Barbara, Enrolled Agent replied 4 months ago

No. She wasn't.

But that is not the issue. Bank accounts with co-owners are NOT subject to probate. The funds immediately belong to the surviving account holder upon presentation of the death certificate.

The nursing home would have to file a lawsuit and obtain a judgment in order to obtain any of the funds from your estate not your daughter.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago

"So the nursing home would have to be paid out of the funds" was your last post to me.

Is that what you are mostly worried about? The nursing home wanting payment from the account or your daughter not being able to keep all the money in the account?

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Customer reply replied 4 months ago
those are the questions I need answered.
Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago

If you go into a nursing home and you have accounts to pay then they are not omitted when looking to how your nursing home bill will be paid. Just because your daughter's name is ***** ***** account too does not stop those funds from being required for payment.

If you are looking at perhaps Medicaid paying then you want to make sure that you do not have too much assets. Under the Deficit Reduction Act of 2005, Congress determined there should be a look-back period of five years to examine an individual's assets to determine Medicaid eligibility.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago

The National Elder Law Foundation advises on specific attorneys that can assist you in making sure your needs are covered and protecting items for your family.

http://www.nelf.org/

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