From: "hilary miller" <hilary.miller@execnet.com>
Newsgroups: misc.legal
Subject: joint acct vs single
Date: 8 Oct 92 17:07:44 EST
Reply-To: "hilary miller" <hilary.miller@execnet.com>
Distribution: misc
Organization: Executive Networks Information


Steve Tobias, in a message to All on 10-07-92 at 2:40am, said:

ST>|    Questions re a joint bank account in the name of a parent and his/h
   |child vs. an account in a parent's name with the child as beneficiary
   |(i.e. payable on death):
   |_______________________________________________________________________

ST>|- Assuming parent is source of money, does setting up joint account wit
   |child make money subject to gift tax if it's >$10,000?
   |_______________________________________________________________________

               Usually not.  No gift tax is payable until the
               gift is "complete."  Assuming the child does not
               have the lifetime right to withdraw the money, the
               gift becomes complete upon the parent's death and
               is subject to estate tax, not gift tax.

ST>|-Is going through probate (i.e. getting ripped off by probate attorney)
   |avoided in either type of account upon death of parent?
   |_______________________________________________________________________

               Yes.  (I disagree with your characterization as
               "getting ripped off.")

ST>|-re my "ripped off" comment above, maybe I'm wrong, though I doubt it.
   |What is typical legal fee: flat charge, percentage of $ involved...??
   |For example, for a bank account in parent's name only, $XX, no benefici
   |named (except in will), what percentage of XX would probate attorney ge
   |_______________________________________________________________________

               It varies.  Attorneys' fees *and* executor's com-
               missions can run up to 10% of a small estate, 5%
               of a large one.

ST>|-Is a federal tax involved only if total inheritance is over $600,000?
   |______________________________________________________________________

               Generally speaking, yes.

          Standard Disclaimer: The above information is not to be
          construed as legal advice. Legal advice may not be given on
          a BBS, especially one which crosses state and national boun-
          daries, because the law varies from jurisdiction to jurisdic-
          tion and because of concerns about unauthorized practice of
          law (a criminal violation) in those jurisdictions in which
          the author is not licensed.  Proper legal advice can only be
          obtained from an attorney licensed to practice in your juris-
          diction who is competent in the specialized area of the law,
          whom you consult and hire, and who then assumes the obli-
          gation to protect your rights and explain your responsibili-
          ties.


   L A
 I    R        Hilary B. Miller of Greenwich, Connecticut
  H/\Y         CIS: 76040,1743
    
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