Legal Question in Wills and Trusts in Texas

Inheritance from JWROS account

Part of my wife's mother's estate was cash in a joint account with my sister-in-law who had right of survivorship. I guess this was to avoid probate. If the sister-in-law (who is executrix of the estate) distributes this money to the heirs it will be about $40k each. How do the heirs avoid gift tax? Can the money which the sister-in-law has control over be part of the estate for normal distribution? Any help would be appreciated.


Asked on 6/26/09, 8:21 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Inheritance from JWROS account

The money in JTWROS account technically belongs to sister-in-law but is also part of the estate. If she gifts, she can gift up to $13K each year per person (to as many persons she wants to gift to) and will not have to file a gift tax return. Check with your probate attorney about distributing it through the estate.

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Answered on 6/27/09, 9:18 am


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