Discussion:Gifts made from Joint account

After the death of Dad, Mom puts sons (2) on the checking account as joint owners.

Did Mom just complete a gift by so doing? The sons have the legal right to draw every last nickel from that account. I would tend to think no since common sense would say, based on that logic, that every direct deposit from Mom's/Dad's respective pensions that hits that account from that point on would belong a 1/3 to each of the sons and be a completed gift. And that would create an administrative nightmare. But there is enough uneasiness in the scenario to make me ask.

Another scenario...same preliminary facts. After Dad's death and sons added to account. Then later in the year, Mom writes both sons (who each are married) a $25,000 check. $50,000 total.

I guess the purist would say if check was not written $12500 separately to the son and $12500 to the wife, then Mom has made a $25,000 gift to son, with $13,000 of lifetime exclusion amount being used.

Even if assumption is that the gifts were 50/50 to son and his wife, Mom has made a $500 gift to each in 2007.

Was it to merely have them be signers of the account to execute transactions in place of Mom? Or was it to actually give them money to spend for their personal use at their discretion? Also, how was the account titled after both sons' names were on the account?

Regarding the second situation - unless Mom wrote each check out to Son & Wife, you are correct, that she has exceeded the annual exclusion to each son.

Thanks for the reply. It was for convenience, in the event, she needs their help, they can provide it with her money. They do not intend to take any money out of the account. I'll confirm the titling. What are the implications here? I guess one would be if they were mere signatories and the other would be if the account was actually titled to them along with Mom as Joint Tenants. I think the latter.

Would you mind completing your profile so we'll know who we are chatting with?

Thanks 94Nole