Tax question

[SaltH2OHokie]

Nah, just the grandmother's name.  That's why they went and cashed them.  Told my wife that was the only way (which I've got to believe isn't true).

Rick...would the new forum be called "Dr. Phil's Dock" or "Suzie Orman's, I Can Afford an Aquasport"?

[RickK]

Rick...would the new forum be called "Dr. Phil's Dock" or "Suzie Orman's, I Can Afford an Aquasport"?

H&R Dock?
   

[seabob4]

Let's look at this a bit differently.  The relative obviously chose your wife to be the benefactor in regards to the savings bonds.  Since she was still alive, that decision was for all practical purposes a "gift".  If the savings bonds were listed as part of the estate in the relative's will, they should have been removed from the will at that time...as they were no longer part of the estate.  The "estate" is what remains AFTER the person dies, not what used to be there.  So the will should have been ammended at that point to exclude the bonds from the estate.  I would imagine this wasn't done.

I won't go any further with what's right, what's wrong, what's lawful, etc.  We just settled Maggie's Mom's estate after 7 years in the courts...yeah, that was fun.  But what I WILL advise you to do is seek the advice of a good probate attorney.  Yeah, it will cost you a few hundred, but, once you explain to him what you have told us, he/she will be able to tell you exactly where you stand.

Was your wife adopted?  'Cause it sounds like she has absolute morons for parents!!


I like that one Rick...

[SaltH2OHokie]

Was your wife adopted?  'Cause it sounds like she has absolute morons for parents!!


I like that one Rick...

Not adopted, just managed to get enough good genes to outweigh the bad.

Rick: agree with SB, that was a winner  

[Capt. Bob]

Nah, just the grandmother's name.  That's why they went and cashed them.  Told my wife that was the only way (which I've got to believe isn't true).

(Early in tax year 2013, wife's living relative, knowing she was not long for this world, passed   on savings bonds to my wife that were still in relative's name (I think mostly paper EE-series). Wife's moron parents (I love my in-laws ) took the bonds, and rather than have them re-issued or my wife's name added, or whatever the other options may have been, went and cashed every last one of them. Mature, not mature, didn't matter...just took Nana to the bank, had her sign the back of every last one, and out the door they walked with cashiers check in my wife's name for a sum of money substantially less than what could have been realized by hanging on to them and cashing as-needed/when mature.)



 Shame on me for not reviewing your original post. Your wife did get the money. The original bond holder (Nana) is responsible for the tax owed. She has passed so technically her estate is responsible. Since you (your wife) got the money (cashiers check made in her name) that amount is required as reported income on your (assuming filing jointly) tax form. You would be responsible for taxes on that amount.

Since this all came into play before she died the Feds get two cracks at the money. First on the bond sale and again on reported income (assuming you do). Of course, Nana could have filed and listed the bond amount as a gift and that would have lessened your tax burden but......

 If again, your in-laws got the money, that would be reportable income on their tax forms. Why would they be asking you for funds?

[seabob4]

Here's a good one for you to chew on Ryan...totally unfair, but that's the deal.

The one who caused the 7 year "hiccup" in the estate proceedings was her nutball sister Adrienne.  Once we sued, and the courts ruled in our favor (including her paying court costs), she one-upped them...and us.  She went out an got a Capitol One Visa with a $15K limit, her portion of the estate as the basis for getting the card.  She maxed out the card, then flipped the bird at Capitol One.  Cap One slapped a lien on the estate for the amount owed.  Maggie and the 2 other siblings basically lost $5K a piece on that little manuever before the estate was cleared to be paid out.

All in all, that beetch cost each sibling between $80K and $90K.  Don't know if you know this, but Maggie's Mom's property right off Bee Ridge in Sarasota (one of the BUSIEST streets in Sarasota!) had a cash offer back in the real estate boom of $325K...cash, from a car dealer.  Because of the beetch Adrienne, and the amount of time the estate took to be settled, we finally ended up selling the property...to the SAME dealer...for $82K!!!   Almost $245K down the pisser!!!


Yeah, I know ALL about this "estate" stuff and relatives... :shaking2:  :shaking2:  :shaking2:

[futch13]

OK, I'm a CPN (Certified Public Nuisance) not a CPA, however, I listen when my account talks and try to understand what he says between the lines.

I agree with CB in regards to it was Nana who signed the bonds therefore she is responsible for the taxes on the bonds.  She gifted the money to you not "willed" it to you.  Therefore if you claim it on your taxes as income the you have to pay taxes on it thru your filing not the estates as the funds were no longer in the estate at time of death.

Of course it would take a tax attorney and estate attorney to figure it all out.

Just my .02

[SaltH2OHokie]

OK, I'm a CPN (Certified Public Nuisance) not a CPA, however, I listen when my account talks and try to understand what he says between the lines.

I agree with CB in regards to it was Nana who signed the bonds therefore she is responsible for the taxes on the bonds.  She gifted the money to you not "willed" it to you.  Therefore if you claim it on your taxes as income the you have to pay taxes on it thru your filing not the estates as the funds were no longer in the estate at time of death.

Of course it would take a tax attorney and estate attorney to figure it all out.

Just my .02

Pretty much hypothetical.  More like a gripe.  Yes, Gab received the money.  No, Gab did not receive a 1099 for those bonds (they weren't in her name).  

We've filed our taxes and our checks to Uncle Sam are sealed in their envelopes waiting another week before setting them free.  

The money to the in-laws, right/wrong/otherwise, is also pretty much already a done deal.  Just chaps my rear, and I wanted to make sure I wasn't missing something.  I think the reality of the situation is that her dad, and his brother, probably ended up with a hefty tax bill since Nana was liquidating positions prior to her death, and I think they're holding the bag for a substantial tax bill.  That said, I think they inherited more than enough money to offset that tax bill, so I feel like its pretty low to call your daughter and say "hey, I know I inherited enough from your grandmother to retire early, but you owe me money for taxes".



Bob, gotta admit, that was a pretty clever plan your sister-in-law pulled.

Seems various versions of stories like this (these) are reaaaaly common.  I should consider becoming a probate attorney  

[seabob4]

Yep Ryan, perhaps it was.  But keep in mind her tactics, stalls, and gamesmanship cost her $80K as well...actually closer to $100K when all was said and done.  She didn't get a penny out of the estate, and will most likely be found dead in a gutter in Sarasota some day.  


Oh well....