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Q: Advice on special fund for my dying brother ( No Answer,   2 Comments )
Question  
Subject: Advice on special fund for my dying brother
Category: Business and Money
Asked by: tpsmith123-ga
List Price: $35.00
Posted: 14 Dec 2005 06:59 PST
Expires: 13 Jan 2006 06:59 PST
Question ID: 605700
My brother is very ill, needs 24/hr care, and is unable to work.  I
have set up a checking account into which I deposit money given to him
by his (many) friends.  This account is in my wife's name (it was an
old account that was unused for some time).  Right now, it is at about
$18K.  I use the money to pay for my brother's expenses such as rent,
home health care services, insurance, etc. I have Durable Power of
Attorney.

I am concerned about the future tax issues related to this account. 
Will this money be subject to income tax or is it exempt (because it
is a gift, or for some other reason)?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Advice on special fund for my dying brother
From: 4keith-ga on 15 Dec 2005 08:55 PST
 
Talk to your bank about getting a trust account set up for this money.
 For tax reasons and for ethical/honesty reasons and accounting
reasons, it must be in its own separate account, NOT the one set up
for your wife.  A local tax accountant or CPA can advise you if there
are any tax implications.

4KEITH (I'm NOT a GOOGLE Researcher)
Accountant
Subject: Re: Advice on special fund for my dying brother
From: tpsmith123-ga on 21 Dec 2005 11:12 PST
 
Thanks, but this money is not eligible for a trust at my bank (500K
min). The bank says I should hire an attorney to get advice and set up
a trust, but I am reluctant since the amount I pay an attorney may end
up being the same as or more than any tax on this money.

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