Legal Question in Tax Law in Pennsylvania

Re: money held jointly

While anyone can gift up to $12,000 (may be $13,000 for 2007) to as many people as they want, relatives or strangers, each year, your question is complicated since there are insufficient facts and a possible problem involved. Questions that need to be answered: Does the account read "A and B" or "A or B", as this could produce different results? Whose funds were used to open the account, yours, mom's or both? If only mom's funds, did she intend to give you a gift at the time the account was opened, use the account to avoid probate and/or was it merely to allow you access if she could make withdrawals? Whose social security number is on the account, and who reports any earnings? If you are contemplating moving all or a portion of the account to avoid Medicaid reimbursement and to qualify mom for Medicaid, there may be a look-back period involved. This may be be shortened if the applicable State law where mom resides permits gifting to reduce Medicaid contributions (NJ does not and PA needs to be checked). Thus, there is no simple answer to your question without more facts known.