Legal Question in Wills and Trusts in California

Re: addition of checking account

your father should consult an estate planning attorney with knowledge of related tax issues. making you a joint tenant may not be the best way to deal with his checking account now, during any incapacity or at death.

in addition, creation of a joint tenancy results in a gift for federal gift tax purposes. although there may be an exclusion that applies to avoid any current payment of gift tax, a federal gift tax return may still be needed.

Re: addition of checking account

Your father is smart. He knows that the easiest way to pass money to you is by making you a joint tenant on his bank account. That way when he dies the money is automatically yours. As far as your father's debts, if the rest of his estate cannot pay his debts, then the money which was jointly yours will be used to pay his debts. You should find out from him what debt he has. You really need to face the fact that your father is going to die in a few years and you and he should plan for his declining years. If you treat him well he will happily give you his entire estate.

Re: addition of checking account

In addition to what Ms. Montgomery said, I would add that you would not be personally liable for any of his debt just because you were joint owner of the checking account. However, the monies in the checking account, to the extent that they belong to both you and your father, may be attached to pay his debts.

Your father can legally add you to an account without your consent. You, however, may disclaim the gift if you so choose.