QUESTION
Should my single older brother win the lottery who happens to be in frail health, can he put me down on his bank account?
Asked on May 11th, 2013 on Taxation - Michigan
More details to this question:
How would the IRS view this and would the money pass onto me in the event of his death?
3 ANSWERS
If he adds you to his bank account, he is making a gift to you. If the value of the account is large enough, this is a gift subject to gift tax. Before he does anything, he should seek the advice of an attorney specializing in estate planning.
Answered on May 15th, 2013 at 5:05 AM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
Whether or not he wins the lottery, he can "put you down on his bank account" Why would the IRS care? Depends on what you mean by "put you down on his bank account" If you mean, add you as a signer, then it goes according to his will, if any, or else to his heirs (presumably you and any other siblings, or perhaps some nieces or nephews?) If you mean, make the account a joint account, yes. Of course, any taxes still must be paid.
Answered on May 15th, 2013 at 4:50 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
If your brother won the lottery he would be liable for the taxes on the winnings, and if you were joint on his bank account generally you would be its owner upon his passing.
Answered on May 14th, 2013 at 10:11 PM