On Parents’ Account

Today TaxMama hears from Sherri in Montana with this question. “Are there tax consequences to being a signer on your elderly parents’ checking account in case something happens to them?”

TaxMama answers Tax Questions

Dear Sherri,

Do you mean will anything bad happen to if you have been added to your parents’ signature card?

No. In fact, that’s a good thing.
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If you also sign on the account, it might not be frozen upon the death of one or both of your parents. Your hands won’t be tied when it comes to paying expenses for your surviving parent.

It doesn’t obligate you to anything.

There are no taxes involved – unless, of course, you draw out more than ,000 per year for your own personal use.
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Then there might be gift taxes your parents might have to pay.

And remember, you can find answers to all kinds of questions about signing on your parents’ accounts and other tax issues, free. Where? Where else? At TaxMama.com
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