QUESTION

Is that money in the accounts considered inherited money?

Asked on Apr 11th, 2015 on Estate Planning - Michigan
More details to this question:
I'm on my dad’s banks account (checking, and savings). When he dies that money would be mine. Would I have to pay any kind of taxes on it? I also have a quick claim deed to the house? How does that affect me if I sell the house?
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2 ANSWERS

Business Law Attorney serving Bingham Farms, MI at James T. Weiner, P.C.
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Generally joint bank accounts are considered inherited money or a gift which are not taxable.. The Quit Claim deed on the house is another thing though.. If you use the quit claim deed you will take the house at your father's basis (generally the price he paid for the house).. so when you sell it you will have to pay taxes on the difference from your father's basis and the sales price... if he sets his estate up so the house goes through probate then you would inherit it at the value at the time of his death.. e.g. you would pay little or no taxes if you sold it shortly thereafter.
Answered on Apr 14th, 2015 at 9:21 AM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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I need the details. Generally the bank accounts, no. As for the quit claim deed, that could have tax effects when you sell the property. Do it right, seek counsel.
Answered on Apr 14th, 2015 at 12:56 AM

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