piebaldpython
February 16th, 2011, 08:10 AM
Briefly: My father is 85 and a widower. He has a house (BC lives there temporarily) but he lives in a retirement home. His cash assets are roughly 250K. I am his sole survivor. I am his POA and his bank accts are titled to his name in trust for me.
We would like to avoid inheritance taxes as much as possible. People supposedly in the know have told us that I would have to be CO-OWNER of his house as well as CO-OWNER on his bank accounts in order to avoid this. They have said that the "in trust for" designation only gives me immediate access to his property/funds upon his death but does not avoid the inheritance taxes. Is this right?
I am not comfortable with the whole CO-OWNER designation as in my mind it potentially opens up liability issues and also, if he sells his house and I am co-owner, then some of that profit is declared to me, right?
Thanks for any advice/suggestions.
We would like to avoid inheritance taxes as much as possible. People supposedly in the know have told us that I would have to be CO-OWNER of his house as well as CO-OWNER on his bank accounts in order to avoid this. They have said that the "in trust for" designation only gives me immediate access to his property/funds upon his death but does not avoid the inheritance taxes. Is this right?
I am not comfortable with the whole CO-OWNER designation as in my mind it potentially opens up liability issues and also, if he sells his house and I am co-owner, then some of that profit is declared to me, right?
Thanks for any advice/suggestions.