The moment a parent puts you on their bank account as a joint owner, your parent effectively made a gift to you of one-half of the value of the account. If the gift to you is more than $14,000 (meaning the account is more than $28,000), then your parent effectively just made a taxable gift to you, and the gift should be reported to the IRS. Also, one-half of this account is now part of your legal assets, and if for what ever reason there is a legal judgment or lien against your assets, or you are going through a divorce, your one-half share of the account is vulnerable to your creditors and divorce proceedings. Learn more about Joint Accounts and how a Power of Attorney can solve a lot of potential issues from attorney Colleen Carson’s three and a half minute video below called, “Joint Account or Power of Attorney?”
This blog/video is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.