Legal Question in Wills and Trusts in Massachusetts

Reviewing a financial statement that name(s) my son and me on an account as "joint tenancy with right of survivorship." Funds were his share of an educational trust not used. Account was set with his social security # at the time. I was in part a depositor of the funds that went into the educational fund.

Question: If I die beforehand, will those funds be included in my estate or not--note the account has his TIN#.? If so, can I simply delete the right of survivor from the account--but then will a gift tax kick in.


Asked on 7/30/10, 2:46 pm

1 Answer from Attorneys

I assume this is not the proceeds of a 529 fund, but rather a private fund whereby you put these funds away for your sons' education. Let me state to start a little more information is required to answer this correctly.

If the funds were not gifted to your son years ago, then they would be included in your estate for tax purposes. likewise it will be presumed that the funds are part of your estate.

If you take your name off the account and the funds were not gifted to your son for educational purposes years ago, then to the extent they exceed $13,000 ($26,000 if a joint gift from both parents) then you would be required to file a gift tax return. However, the gift tax credit exist so no tax would need to be paid now but could be included in your estate later on to the extent it was taxable.

I suggest you call an attorney or your accontant to discuss the matter in more detail and get a better idea of what to do.

Please feel free to contact me without obligation.

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Answered on 8/04/10, 3:20 pm


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