Legal Question in Banking Law in North Carolina

Certificate of Deposit

If I set up a CD at my bank in my name and add the name of my two grown children, would this get me in trouble with income tax laws? It is not meant to be a gift. It just gives them the right to withdraw money in case they need to get money to help their Dad, if I should become unable to handle the money matters. I think there is a law about how much money can be given to children. This is not meant to be a gift.


Asked on 11/15/07, 4:24 pm

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Certificate of Deposit

ALthough your intent may not be to establish a gift, if they have the right to withdraw it may be considered a gift by the IRS and other tax authorities.

It is not illegal, but there may be Gift Tax implications if any recipient receives more than $ 12K in any year. Call or email for more assitance.

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Answered on 11/16/07, 7:14 am


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