Q: My son is receiving an inheritance from his grandmother, if I open a joint account with him will I have to pay taxes
It will be 57000
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
If your son is receiving an inheritance of $57,000 from his grandmother and you open a joint account with him, the inheritance itself is not subject to federal income tax. Generally, inheritances are not considered taxable income for federal tax purposes.
However, placing the inheritance into a joint account could have implications. For instance, it might be considered a gift if you use any of that money for personal expenses. The IRS has gift tax rules that could come into play if the amount exceeds the annual gift tax exclusion, which is $18,000 for 2024.
It's also important to consider that any interest or investment income generated from the inheritance after it’s deposited in the joint account will be subject to income tax. Both you and your son may need to report this income on your tax returns, depending on who the income is attributed to. Consulting with a tax professional can help you understand the specific implications for your situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
