Re: POA and Bank Accounts - a cautionary note

[Guest guest]

LOL - Oh, yes, the OPT tax (occupational privilege) - to say nothing of

the per capita tax....which is a tax because you have a head!

Dianna Brendle wrote:

> Pennsylvania has a tax for every thing you can think of and things you

> can't. Seriously. There's a tax for if you're alive, there's a tax for

> working, that's in addition to payroll taxes, it's a yearly tax, small

> but ridiculous. ~Dianna

>

>

[Guest guest]

OH WOO HOO, I'm fainting! Great! ~~Dianna

" Peggy C. Durant " pdurant@...> wrote:Although it used to be

different, in PA there is now a 0% tax rate on

jointly owned assets or assets inherited from a husband or wife....so

you're safe there. Some good news for a change..... ;-)

You're welcome.

Peggy

Dianna Brendle wrote:

> Thank you very much, I suppose all this applies to husband and wife

> too? Cant believe would have to pay inheritence tax on our

> money, most earned by him. How stupid! No wonder people hide their

> money! None of us has much, that makes it even worse, they take what

> little you manage to save. Anyway thanks alot. ~~Dianna

>

>

[Guest guest]

Yeah, I'd never lived in a state where you paid a tax because you live and a tax

because you work.

" Peggy C. Durant " pdurant@...> wrote:LOL - Oh, yes, the OPT tax

(occupational privilege) - to say nothing of

the per capita tax....which is a tax because you have a head!

Dianna Brendle wrote:

> Pennsylvania has a tax for every thing you can think of and things you

> can't. Seriously. There's a tax for if you're alive, there's a tax for

> working, that's in addition to payroll taxes, it's a yearly tax, small

> but ridiculous. ~Dianna

>

>

[Guest guest]

Believe it or not, years ago, there was a yearly PA tax if someone owed

you money and you had a judgment against them filed at the courthouse.

You were assessed somewhere between $20 and $35 a year for the privilege

of not being paid. The only way to avoid the tax was to take the

judgment off record and let the debtor get away with it.

At least PA doesn't tax you yearly on the value of your vehicle which is

something that VA does. And the state income tax is relatively low by

comparison to a lot of other states. Gotta pick your poison I guess

when it comes to states and taxation.

Peggy.

Dianna Brendle wrote:

> Yeah, I'd never lived in a state where you paid a tax because you live

> and a tax because you work.

>

> " Peggy C. Durant " pdurant@...> wrote:LOL - Oh, yes, the

> OPT tax (occupational privilege) - to say nothing of

> the per capita tax....which is a tax because you have a head!

>

> Dianna Brendle wrote:

>

> > Pennsylvania has a tax for every thing you can think of and things you

> > can't. Seriously. There's a tax for if you're alive, there's a tax for

> > working, that's in addition to payroll taxes, it's a yearly tax, small

> > but ridiculous. ~Dianna

>

[Guest guest]

That is very interesting! Crazy law. ~Dianna

" Peggy C. Durant " pdurant@...> wrote:Believe it or not, years ago,

there was a yearly PA tax if someone owed

you money and you had a judgment against them filed at the courthouse.

You were assessed somewhere between $20 and $35 a year for the privilege

of not being paid. The only way to avoid the tax was to take the

judgment off record and let the debtor get away with it.

At least PA doesn't tax you yearly on the value of your vehicle which is

something that VA does. And the state income tax is relatively low by

comparison to a lot of other states. Gotta pick your poison I guess

when it comes to states and taxation.

Peggy.

Dianna Brendle wrote:

> Yeah, I'd never lived in a state where you paid a tax because you live

> and a tax because you work.

>

> " Peggy C. Durant " pdurant@...> wrote:LOL - Oh, yes, the

> OPT tax (occupational privilege) - to say nothing of

> the per capita tax....which is a tax because you have a head!

>

> Dianna Brendle wrote:

>

> > Pennsylvania has a tax for every thing you can think of and things you

> > can't. Seriously. There's a tax for if you're alive, there's a tax for

> > working, that's in addition to payroll taxes, it's a yearly tax, small

> > but ridiculous. ~Dianna

>

[Guest guest]

That is very interesting! Crazy law. ~Dianna

" Peggy C. Durant " pdurant@...> wrote:Believe it or not, years ago,

there was a yearly PA tax if someone owed

you money and you had a judgment against them filed at the courthouse.

You were assessed somewhere between $20 and $35 a year for the privilege

of not being paid. The only way to avoid the tax was to take the

judgment off record and let the debtor get away with it.

At least PA doesn't tax you yearly on the value of your vehicle which is

something that VA does. And the state income tax is relatively low by

comparison to a lot of other states. Gotta pick your poison I guess

when it comes to states and taxation.

Peggy.

Dianna Brendle wrote:

> Yeah, I'd never lived in a state where you paid a tax because you live

> and a tax because you work.

>

> " Peggy C. Durant " pdurant@...> wrote:LOL - Oh, yes, the

> OPT tax (occupational privilege) - to say nothing of

> the per capita tax....which is a tax because you have a head!

>

> Dianna Brendle wrote:

>

> > Pennsylvania has a tax for every thing you can think of and things you

> > can't. Seriously. There's a tax for if you're alive, there's a tax for

> > working, that's in addition to payroll taxes, it's a yearly tax, small

> > but ridiculous. ~Dianna

>

[Guest guest]

well in florida, we have no state tax... just property tax, sales tax, gas

tax and the usual and I do believe they have an exemption of 75K for estate

tax as well but don't quote me on that one.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Pennsylvania has a tax for every thing you can think of and things you

can't. Seriously. There's a tax for if you're alive, there's a tax for

working, that's in addition to payroll taxes, it's a yearly tax, small but

ridiculous. ~Dianna

Jolene Ehret jehret@...> wrote: Well sure glad I live in Texas.

Inheritance taxes only apply to estates

in the high dollar amounts. I forget what it is

but is over $150,000 or so. We didn't have to pay anything on the

assets that were in my husband's estate, didn't come anywhere

near that amount. Also they told me that for small estates, just as

well not to have a will cause it costs more to process a will

that if they don't have one. Richie did have a will but in Texas, being

community property state it all goes to me anyway,

if there is anything when I die it goes to my kids. But won't be much

but bills and I don't know yet how we will get around

that. Don't want kids stuck with my bills. I am hoping to live long

enough to pay off the blasted loan and then maybe can

sell the house and get rid of my credit card bills. But will just have

to see how it goes. And so it goes. Jolene

Peggy C. Durant wrote:

> 1/2 of the value of the trailer would be vulnerable to the debts

> incurred by the one who is deceased first. I don't think a creditor can

> force the sale of a trailer (unlike real estate) but 1/2 the value could

> be subject to judgments or liens placed due to debts of the first

> decedent if the creditor's feel it is worth the trouble to place them.

>

> Bear in mind, I'm not an attorney....so please consider consulting one

> about your specific situation. Most attorneys do pro-bono work and the

> bar association in your county can help you if you can't afford legal

> counsel. In addition, the state of PA has a fund to provide legal

> services to those that can't afford them.

>

> Peggy

>

>

> Dianna Brendle wrote:

>

> > You kind of lost me here. Would the survivor (out of my mom and

> > sister) have to sell the trailer to pay the other's unpaid doctor and

> > medical bills, since it's in both their names? ~Dianna

> >

> >

>

>

>

[Guest guest]

well in florida, we have no state tax... just property tax, sales tax, gas

tax and the usual and I do believe they have an exemption of 75K for estate

tax as well but don't quote me on that one.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Pennsylvania has a tax for every thing you can think of and things you

can't. Seriously. There's a tax for if you're alive, there's a tax for

working, that's in addition to payroll taxes, it's a yearly tax, small but

ridiculous. ~Dianna

Jolene Ehret jehret@...> wrote: Well sure glad I live in Texas.

Inheritance taxes only apply to estates

in the high dollar amounts. I forget what it is

but is over $150,000 or so. We didn't have to pay anything on the

assets that were in my husband's estate, didn't come anywhere

near that amount. Also they told me that for small estates, just as

well not to have a will cause it costs more to process a will

that if they don't have one. Richie did have a will but in Texas, being

community property state it all goes to me anyway,

if there is anything when I die it goes to my kids. But won't be much

but bills and I don't know yet how we will get around

that. Don't want kids stuck with my bills. I am hoping to live long

enough to pay off the blasted loan and then maybe can

sell the house and get rid of my credit card bills. But will just have

to see how it goes. And so it goes. Jolene

Peggy C. Durant wrote:

> 1/2 of the value of the trailer would be vulnerable to the debts

> incurred by the one who is deceased first. I don't think a creditor can

> force the sale of a trailer (unlike real estate) but 1/2 the value could

> be subject to judgments or liens placed due to debts of the first

> decedent if the creditor's feel it is worth the trouble to place them.

>

> Bear in mind, I'm not an attorney....so please consider consulting one

> about your specific situation. Most attorneys do pro-bono work and the

> bar association in your county can help you if you can't afford legal

> counsel. In addition, the state of PA has a fund to provide legal

> services to those that can't afford them.

>

> Peggy

>

>

> Dianna Brendle wrote:

>

> > You kind of lost me here. Would the survivor (out of my mom and

> > sister) have to sell the trailer to pay the other's unpaid doctor and

> > medical bills, since it's in both their names? ~Dianna

> >

> >

>

>

>

[Guest guest]

in florida a trailer is licensed just like a car with an annual sticker and

is considered personal property and not real estate. Also in Florida if its

your primary residence I don't think it can be sold for credit card bills or

to satisfy an estate. When my Uncle died the trailer was treated like his

car has a title like a car I had him sign the back of it giving me open

title and when he died sold it like a car. There was no estate since I was

on his bank account etc.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Well sure glad I live in Texas. Inheritance taxes only apply to estates

in the high dollar amounts. I forget what it is

but is over $150,000 or so. We didn't have to pay anything on the

assets that were in my husband's estate, didn't come anywhere

near that amount. Also they told me that for small estates, just as

well not to have a will cause it costs more to process a will

that if they don't have one. Richie did have a will but in Texas, being

community property state it all goes to me anyway,

if there is anything when I die it goes to my kids. But won't be much

but bills and I don't know yet how we will get around

that. Don't want kids stuck with my bills. I am hoping to live long

enough to pay off the blasted loan and then maybe can

sell the house and get rid of my credit card bills. But will just have

to see how it goes. And so it goes. Jolene

Peggy C. Durant wrote:

> 1/2 of the value of the trailer would be vulnerable to the debts

> incurred by the one who is deceased first. I don't think a creditor can

> force the sale of a trailer (unlike real estate) but 1/2 the value could

> be subject to judgments or liens placed due to debts of the first

> decedent if the creditor's feel it is worth the trouble to place them.

>

> Bear in mind, I'm not an attorney....so please consider consulting one

> about your specific situation. Most attorneys do pro-bono work and the

> bar association in your county can help you if you can't afford legal

> counsel. In addition, the state of PA has a fund to provide legal

> services to those that can't afford them.

>

> Peggy

>

>

> Dianna Brendle wrote:

>

> > You kind of lost me here. Would the survivor (out of my mom and

> > sister) have to sell the trailer to pay the other's unpaid doctor and

> > medical bills, since it's in both their names? ~Dianna

> >

> >

>

>

>

[Guest guest]

Well, this is a mobile home, um, no yearly sticker, are you thinking a travel

trailer? I just say trailer, but it's a mobile home and is real estate here. At

least we pay real estate taxes, lol. ~Dianna

Nonnie nonnie_nt@...> wrote:in florida a trailer is licensed just like a

car with an annual sticker and

is considered personal property and not real estate. Also in Florida if its

your primary residence I don't think it can be sold for credit card bills or

to satisfy an estate. When my Uncle died the trailer was treated like his

car has a title like a car I had him sign the back of it giving me open

title and when he died sold it like a car. There was no estate since I was

on his bank account etc.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Well sure glad I live in Texas. Inheritance taxes only apply to estates

in the high dollar amounts. I forget what it is

but is over $150,000 or so. We didn't have to pay anything on the

assets that were in my husband's estate, didn't come anywhere

near that amount. Also they told me that for small estates, just as

well not to have a will cause it costs more to process a will

that if they don't have one. Richie did have a will but in Texas, being

community property state it all goes to me anyway,

if there is anything when I die it goes to my kids. But won't be much

but bills and I don't know yet how we will get around

that. Don't want kids stuck with my bills. I am hoping to live long

enough to pay off the blasted loan and then maybe can

sell the house and get rid of my credit card bills. But will just have

to see how it goes. And so it goes. Jolene

Peggy C. Durant wrote:

> 1/2 of the value of the trailer would be vulnerable to the debts

> incurred by the one who is deceased first. I don't think a creditor can

> force the sale of a trailer (unlike real estate) but 1/2 the value could

> be subject to judgments or liens placed due to debts of the first

> decedent if the creditor's feel it is worth the trouble to place them.

>

> Bear in mind, I'm not an attorney....so please consider consulting one

> about your specific situation. Most attorneys do pro-bono work and the

> bar association in your county can help you if you can't afford legal

> counsel. In addition, the state of PA has a fund to provide legal

> services to those that can't afford them.

>

> Peggy

>

>

> Dianna Brendle wrote:

>

> > You kind of lost me here. Would the survivor (out of my mom and

> > sister) have to sell the trailer to pay the other's unpaid doctor and

> > medical bills, since it's in both their names? ~Dianna

> >

> >

>

>

>

[Guest guest]

Well, this is a mobile home, um, no yearly sticker, are you thinking a travel

trailer? I just say trailer, but it's a mobile home and is real estate here. At

least we pay real estate taxes, lol. ~Dianna

Nonnie nonnie_nt@...> wrote:in florida a trailer is licensed just like a

car with an annual sticker and

is considered personal property and not real estate. Also in Florida if its

your primary residence I don't think it can be sold for credit card bills or

to satisfy an estate. When my Uncle died the trailer was treated like his

car has a title like a car I had him sign the back of it giving me open

title and when he died sold it like a car. There was no estate since I was

on his bank account etc.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Well sure glad I live in Texas. Inheritance taxes only apply to estates

in the high dollar amounts. I forget what it is

but is over $150,000 or so. We didn't have to pay anything on the

assets that were in my husband's estate, didn't come anywhere

near that amount. Also they told me that for small estates, just as

well not to have a will cause it costs more to process a will

that if they don't have one. Richie did have a will but in Texas, being

community property state it all goes to me anyway,

if there is anything when I die it goes to my kids. But won't be much

but bills and I don't know yet how we will get around

that. Don't want kids stuck with my bills. I am hoping to live long

enough to pay off the blasted loan and then maybe can

sell the house and get rid of my credit card bills. But will just have

to see how it goes. And so it goes. Jolene

Peggy C. Durant wrote:

> 1/2 of the value of the trailer would be vulnerable to the debts

> incurred by the one who is deceased first. I don't think a creditor can

> force the sale of a trailer (unlike real estate) but 1/2 the value could

> be subject to judgments or liens placed due to debts of the first

> decedent if the creditor's feel it is worth the trouble to place them.

>

> Bear in mind, I'm not an attorney....so please consider consulting one

> about your specific situation. Most attorneys do pro-bono work and the

> bar association in your county can help you if you can't afford legal

> counsel. In addition, the state of PA has a fund to provide legal

> services to those that can't afford them.

>

> Peggy

>

>

> Dianna Brendle wrote:

>

> > You kind of lost me here. Would the survivor (out of my mom and

> > sister) have to sell the trailer to pay the other's unpaid doctor and

> > medical bills, since it's in both their names? ~Dianna

> >

> >

>

>

>

[Guest guest]

why not withdraw the money and keep it in a safe place in cash. I wouldn't

ever show alot of money in an account!

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Hi Peggy, I have a question. I'm in Pa. My mom and sister both with cancer

have a bank account in both their names and also mom gave my sister POA. Do

you mean if one of them dies, the other would have to pay inheritnece tax on

the entire amount in their bank account? Even if both names are on the

account? It is funds they share and both add to and it's no fortune, just a

little extra they dont want to keep in their home. They both live on SS, and

live on a thread. Also their trailer is in both their names, is that the

same? It would be horrible to think one will be slammed with taxes on

something that is theirs. Thanks ~Dianna

" Peggy C. Durant " pdurant@...> wrote:It is important to

understand that putting a name on your bank account

(at least in PA) makes that person a co-owner of the account. My

husband is an attorney and I fill out a lot of estate inheritance tax

returns. We have run into this misconception many times where the person

who adds a child or relative to the account did it only for convenience,

never understanding that the account then belongs equally to themselves

and the person whose name was added.. In PA if the name is added

within one year of the date of death, the entire amount is inheritance

taxable as part of the estate (estate pays the taxes) but the co-owner

gets all the funds.

We have found that many times bank personnel (who may not understand the

complete ramifications themselves) encourage people to put one child's

name on the account in order to help mom or dad pay the bills but never

inform the person that doing so makes that particular child an owner.

When mom or dad passes away, that child owns whatever is left in the

account and it does not pass through the estate for distribution to the

other heirs, if any. There are so many families where the expectation

of the kids is they will share equally because the will states that all

the assets should be divided equally between the children. It gets

really hairy when they find out that the checking or savings account

with the bulk of the funds in it belongs to one sibling. It is possible

that the co-owner will share the funds with the rest of the family

(especially if mom or dad made that clear that is their intention), but

there is no way to make them (no matter what verbal promises were made)

if they don't want to.

A POA will accomplish the same thing (allow another to write the checks

to pay the bills) and more (the POA holder may conduct business, sell or

buy on behalf of the POA grantor, etc...) and doesn't make the person

co-owner of the account or other assets. In addition, the POA usually

states that the holder is bound to act for the good of and on behalf of

the grantor. A co-owner of a bank account has no such obligation. It

is also important to make it a Durable POA so that it does not cease to

be in force when the grantor becomes incapable of making their own

decisions.

Sorry to be so long-winded on this but we just ran into this issue last

night again with another family. Do some research as to the rules in

your state and with your bank(s) before putting someone else's name on

your accounts.

Peggy

>

[Guest guest]

why not withdraw the money and keep it in a safe place in cash. I wouldn't

ever show alot of money in an account!

Nonnie

Re: POA and Bank Accounts - a cautionary

note

Hi Peggy, I have a question. I'm in Pa. My mom and sister both with cancer

have a bank account in both their names and also mom gave my sister POA. Do

you mean if one of them dies, the other would have to pay inheritnece tax on

the entire amount in their bank account? Even if both names are on the

account? It is funds they share and both add to and it's no fortune, just a

little extra they dont want to keep in their home. They both live on SS, and

live on a thread. Also their trailer is in both their names, is that the

same? It would be horrible to think one will be slammed with taxes on

something that is theirs. Thanks ~Dianna

" Peggy C. Durant " pdurant@...> wrote:It is important to

understand that putting a name on your bank account

(at least in PA) makes that person a co-owner of the account. My

husband is an attorney and I fill out a lot of estate inheritance tax

returns. We have run into this misconception many times where the person

who adds a child or relative to the account did it only for convenience,

never understanding that the account then belongs equally to themselves

and the person whose name was added.. In PA if the name is added

within one year of the date of death, the entire amount is inheritance

taxable as part of the estate (estate pays the taxes) but the co-owner

gets all the funds.

We have found that many times bank personnel (who may not understand the

complete ramifications themselves) encourage people to put one child's

name on the account in order to help mom or dad pay the bills but never

inform the person that doing so makes that particular child an owner.

When mom or dad passes away, that child owns whatever is left in the

account and it does not pass through the estate for distribution to the

other heirs, if any. There are so many families where the expectation

of the kids is they will share equally because the will states that all

the assets should be divided equally between the children. It gets

really hairy when they find out that the checking or savings account

with the bulk of the funds in it belongs to one sibling. It is possible

that the co-owner will share the funds with the rest of the family

(especially if mom or dad made that clear that is their intention), but

there is no way to make them (no matter what verbal promises were made)

if they don't want to.

A POA will accomplish the same thing (allow another to write the checks

to pay the bills) and more (the POA holder may conduct business, sell or

buy on behalf of the POA grantor, etc...) and doesn't make the person

co-owner of the account or other assets. In addition, the POA usually

states that the holder is bound to act for the good of and on behalf of

the grantor. A co-owner of a bank account has no such obligation. It

is also important to make it a Durable POA so that it does not cease to

be in force when the grantor becomes incapable of making their own

decisions.

Sorry to be so long-winded on this but we just ran into this issue last

night again with another family. Do some research as to the rules in

your state and with your bank(s) before putting someone else's name on

your accounts.

Peggy

>

[Guest guest]

never had problems and even sued an insurance company pro se after hurricane

irene in 98 and won my pleedings.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

No, I am not an attorney but I am married to one and I've worked as his

the office manager for the last 27 years and I work extensively with

estates. I've seen the results of self-representation too often to feel

comfortable in advising anyone to do it. Of course, we see the messes,

not the things that went well - or the things that have problems which

haven't yet been discovered. There are so many things that can trip up

a lay person.

You seem happy with your self-representation. I hope you won't have

problems from being your own attorney.

Peggy

..

Nonnie wrote:

> peggy you must be a lawyer and I have found that I am able to do simple

> things myself like file a motion pro se, file a caveat and other simple

> things including a summary administration.

>

> I filed my own non-contested divorce papers for which an attorney wanted

> 3,000 5 years ago. Something this simple does not need any attorney.

>

> Nonnie

>

>

[Guest guest]

never had problems and even sued an insurance company pro se after hurricane

irene in 98 and won my pleedings.

Nonnie

Re: POA and Bank Accounts - a cautionary

note

No, I am not an attorney but I am married to one and I've worked as his

the office manager for the last 27 years and I work extensively with

estates. I've seen the results of self-representation too often to feel

comfortable in advising anyone to do it. Of course, we see the messes,

not the things that went well - or the things that have problems which

haven't yet been discovered. There are so many things that can trip up

a lay person.

You seem happy with your self-representation. I hope you won't have

problems from being your own attorney.

Peggy

..

Nonnie wrote:

> peggy you must be a lawyer and I have found that I am able to do simple

> things myself like file a motion pro se, file a caveat and other simple

> things including a summary administration.

>

> I filed my own non-contested divorce papers for which an attorney wanted

> 3,000 5 years ago. Something this simple does not need any attorney.

>

> Nonnie

>

>

[Guest guest]

In a message dated 8/12/2005 7:47:37 AM Eastern Standard Time,

flipper759@... writes:

I am noting the tension around this subject for some of you and suggest we

table this discussion PLEASE

I am much more concerned that Dianne feel supported as she faces her

mother's prognosis.

This bantering does not help meet that goal or the goal of this group.

Sorry just my 2 cents.

PEACE

Narice

And with inflation, Narice, that would be 10 cents!!! LOL

Lots of hugs and prayers, Donelle

Caregiver to Glenn

[Guest guest]

Open a new forum for this discussion please.

karima

Re: POA and Bank Accounts - a cautionary note

All that being said please please work this out before time gets too short to

do it. With my mom, she waited too late and I was unable to pay bills from her

account so I had to use my own money, which i had very little of then after her

death, it was a long process to get ehr account closed and then my sister who

did not come to help or contribute at all thought she should get a share of what

little was left instead of making sure i got my money back. so now she has her

money and we have our debt.

" Peggy C. Durant " pdurant@...> wrote:It is important to understand

that putting a name on your bank account

(at least in PA) makes that person a co-owner of the account. My

husband is an attorney and I fill out a lot of estate inheritance tax

returns. We have run into this misconception many times where the person

who adds a child or relative to the account did it only for convenience,

never understanding that the account then belongs equally to themselves

and the person whose name was added.. In PA if the name is added

within one year of the date of death, the entire amount is inheritance

taxable as part of the estate (estate pays the taxes) but the co-owner

gets all the funds.

We have found that many times bank personnel (who may not understand the

complete ramifications themselves) encourage people to put one child's

name on the account in order to help mom or dad pay the bills but never

inform the person that doing so makes that particular child an owner.

When mom or dad passes away, that child owns whatever is left in the

account and it does not pass through the estate for distribution to the

other heirs, if any. There are so many families where the expectation

of the kids is they will share equally because the will states that all

the assets should be divided equally between the children. It gets

really hairy when they find out that the checking or savings account

with the bulk of the funds in it belongs to one sibling. It is possible

that the co-owner will share the funds with the rest of the family

(especially if mom or dad made that clear that is their intention), but

there is no way to make them (no matter what verbal promises were made)

if they don't want to.

A POA will accomplish the same thing (allow another to write the checks

to pay the bills) and more (the POA holder may conduct business, sell or

buy on behalf of the POA grantor, etc...) and doesn't make the person

co-owner of the account or other assets. In addition, the POA usually

states that the holder is bound to act for the good of and on behalf of

the grantor. A co-owner of a bank account has no such obligation. It

is also important to make it a Durable POA so that it does not cease to

be in force when the grantor becomes incapable of making their own

decisions.

Sorry to be so long-winded on this but we just ran into this issue last

night again with another family. Do some research as to the rules in

your state and with your bank(s) before putting someone else's name on

your accounts.

Peggy

>

[Guest guest]

All that being said please please work this out before time gets too short to do

it. With my mom, she waited too late and I was unable to pay bills from her

account so I had to use my own money, which i had very little of then after her

death, it was a long process to get ehr account closed and then my sister who

did not come to help or contribute at all thought she should get a share of what

little was left instead of making sure i got my money back. so now she has her

money and we have our debt.

" Peggy C. Durant " pdurant@...> wrote:It is important to understand

that putting a name on your bank account

(at least in PA) makes that person a co-owner of the account. My

husband is an attorney and I fill out a lot of estate inheritance tax

returns. We have run into this misconception many times where the person

who adds a child or relative to the account did it only for convenience,

never understanding that the account then belongs equally to themselves

and the person whose name was added.. In PA if the name is added

within one year of the date of death, the entire amount is inheritance

taxable as part of the estate (estate pays the taxes) but the co-owner

gets all the funds.

We have found that many times bank personnel (who may not understand the

complete ramifications themselves) encourage people to put one child's

name on the account in order to help mom or dad pay the bills but never

inform the person that doing so makes that particular child an owner.

When mom or dad passes away, that child owns whatever is left in the

account and it does not pass through the estate for distribution to the

other heirs, if any. There are so many families where the expectation

of the kids is they will share equally because the will states that all

the assets should be divided equally between the children. It gets

really hairy when they find out that the checking or savings account

with the bulk of the funds in it belongs to one sibling. It is possible

that the co-owner will share the funds with the rest of the family

(especially if mom or dad made that clear that is their intention), but

there is no way to make them (no matter what verbal promises were made)

if they don't want to.

A POA will accomplish the same thing (allow another to write the checks

to pay the bills) and more (the POA holder may conduct business, sell or

buy on behalf of the POA grantor, etc...) and doesn't make the person

co-owner of the account or other assets. In addition, the POA usually

states that the holder is bound to act for the good of and on behalf of

the grantor. A co-owner of a bank account has no such obligation. It

is also important to make it a Durable POA so that it does not cease to

be in force when the grantor becomes incapable of making their own

decisions.

Sorry to be so long-winded on this but we just ran into this issue last

night again with another family. Do some research as to the rules in

your state and with your bank(s) before putting someone else's name on

your accounts.

Peggy

>

[Guest guest]

I agree Narice... 2 cents well spent. Thanks Jolene

flipper759@... wrote:

>

> I am noting the tension around this subject for some of you and

> suggest we

> table this discussion PLEASE

> I am much more concerned that Dianne feel supported as she faces her

> mother's prognosis.

> This bantering does not help meet that goal or the goal of this group.

> Sorry just my 2 cents.

> PEACE

> Narice

>