Legal Question in Wills and Trusts in California
My mother and my wife are both signers on two accounts. One is a checking account and one is a savings account. The checking account has about 40,000 in it and the savings has about 450,000 in it.
The money is not in the living trust though other properties are.
The confusion leading to the question is who does the money belong to when my mother dies? Can my wife just leave it in there as is and left alone or will the government want a chunk of it? If it was only in my mothers name I know it would be an inheritance but as it is now, they both share the money. Not subject to taxes etc. My mother has cancer so we are trying to get everything sorted out asap. She has maybe a month left to live. My mother has been doing everything she can to make sure things are sorted out before she passes but this is one of the things that we are confused on. Right now we are tempted to, with my mothers permission and possible assistance, move her savings to a new account at our own bank. Would the IRS get wind of this transfer and would it count as taxable income or gift or anything of that type?
What should we do?
Thanks for your time
-Mike
1 Answer from Attorneys
She can write a will for the assets which states who the accounts should be bequeathed to, which would have to go to probate, or amend the trust with the accounts as further funding, I suggest that the accounts are made a part of the assets of the trust. Contact me directly.
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