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Old 01-15-2015, 04:20 PM
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Removing child from joint account

I added an adult child's name onto a large bank account some years ago. I recently had second thoughts about this and now want to transfer all the money in that account to a new bank account (with the adult child's knowledge), so I would again be the only name on the account. My concern is, will the IRS question this transfer in some negative way when the transfer is reported by the old and new banks? Thank you for your opinions.



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Old 01-15-2015, 09:52 PM
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Quote:
Originally Posted by richlorn View Post
I added an adult child's name onto a large bank account some years ago. I recently had second thoughts about this and now want to transfer all the money in that account to a new bank account (with the adult child's knowledge), so I would again be the only name on the account. My concern is, will the IRS question this transfer in some negative way when the transfer is reported by the old and new banks? Thank you for your opinions.
I donot think so. you contributed 100% to the account and your son made no contribution. this is ok, but you need a letter signed by both of you.for some banks, that letter would not be satisfactory to remove the child’s name from the account. they supply a form that has to be completed and signed by both of you before they can complete a transfer into a sole named account. I guess you need to contact the bank.


aslongasit was after tax dollars when it was transferred to the acct in the adult child’s name,I mean joint acct, Interest on THE CHILD;’s accounts is taxable.however, you did not have to file form 709 even if the amount was $14k for 2014.



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