My father recently passed away, and I am the executor of the estate. He had a bank account with ~$130K, and at some point he put his sister (my aunt) on the account to make sure the full amount was FDIC insured. Apparently neither he nor my aunt were aware that in 2008 the limit was upped to $250K.
I mailed the bank my father's death certificate, and they removed him from the joint account. Since the money was all my father's, and she was just on the account because they thought it was necessary for FDIC insurance, she now wants to give my father's estate the money.
Since the amount of money is over $10K I believe she will have to declare it as a gift. I'm worried either she or the estate will have to pay taxes on the 'gift'. Is there a way she can give the money to the estate without any tax burdens? Since it's technically 'her' money now we were thinking she could give the money to my sister and I (my father's only heirs) in amounts less then 10K so it wouldn't have to be declared, but this is less than ideal since that would take 7 years. We'd all much prefer to put the money in the estate now, but do it in a way that avoids any tax penalties for either my aunt or the estate. Any advice appreciated.
I'm located in MA, my aunt is in VA if that matter.
Submitted March 01, 2017 at 09:57AM by throwaya98797 http://ift.tt/2lyHH4E
