Money left after mothers death
My mother created joint checking/saving accounts with her and my name on them. Upon her death I am told these legally became my accounts. Is there a way I can disperse the money to my siblings in even portions without them incurring a tax burden? All 3 of us daughters are listed as beneficiaries on the accounts. Her Will clearly states all assets are to be divided even among her three children. The amount of money is greater than $16000 each. Thank you!
Terry Says
Obviously, your mother created these accounts in case you need to spend money on her behalf when she is unable to do so herself. She trusts you to pay for her care, perhaps a caregiver, or make other cash decisions such as paying property taxes.
You’re correct that money in a joint account becomes yours upon her death. But you can currently gift $16,000 each to anyone (including your sisters) every year with no tax implications. And if you gave more in one year, it would only matter if YOU die with an estate of more than $11 million.
So don’t worry about distributing the leftovers. Hopefully there will still be money left in your joint account to distribute!
