Follow
Share

She isn't their financial POA.

Because taxes are based on many personal factors, this is best answered by her tax preparer.
Helpful Answer (7)
Reply to Isthisrealyreal
Report

Even if someone else is the financial POA which would be ridiculous if your sister's name is on the bank accounts and handles your parents finances, the bank accounts are legally hers.

She now has to go to the bank with a copy of the death certificate and get your mother's name removed from the accounts. She should do this right away. She should talk to a tax lawyer or accountant just to be sure because these bank accounts probably won't even need to be probated.

Was your father's name on these accounts at any time? If it was no one paid taxes on the money in the accounts when his name was taken off the accounts.

The money in the joint accounts has already been taxed if came from taxable income. No, your sister does not have to pay taxes on it again. It's her bank account.
Helpful Answer (4)
Reply to BurntCaregiver
Report

Your sister was on this account as a co-owner? It's important to know if she was registered as a signer as in POA or a co-owner. If a co-owner the account becomes hers the moment your mother is gone. She takes the death certificate to the bank and the account becomes hers. She then is the taxpayer for any interest earned by the account at the end of the year. All of this information should be verified by your sister AT THE BANK. They are the best resource for this question. Best of luck.
Helpful Answer (5)
Reply to AlvaDeer
Report
BurntCaregiver Aug 16, 2024
@Alva

The sister is not the POA. She has joint accounts with the mother. The bank accounts are the sister's accounts. If taxes were already paid she will not have to pay them again to remove her late mother's name from her own bank accounts. They do not have to be probated either because they are joint accounts. One holder died, so the other holder owns the accounts and the contents thereof.
(8)
Report
See 2 more replies
The only taxes that might be due is the 2 bucks in interest that it is earning each year. As owner the interest could be reportable to her.

If her mom has passed away the account may as well be closed. Just make sure all of the final bills have been paid.
Helpful Answer (3)
Reply to olddude
Report

I second what Olddude and Burnt Caregiver have said here. I'm very sorry for your loss.
Helpful Answer (2)
Reply to casole
Report

THats a good question. From what I understand, not all bank accts are the same. It has to do with how its worded "and" or "or". If set up as her as POA that stopped at death. I would ask the bank.
Helpful Answer (2)
Reply to JoAnn29
Report

If it is the state of Ohio and your on the bank accounts it must say POD (payable on death) as POA no longer exists here for bank accounts. Check with the bank in your state.
Helpful Answer (1)
Reply to loyalone
Report

I'm sorry for your mother's loss. Your sister was a joint account owner. After your mother passed away, she is now the sole owner of that bank account and will pay income taxes on it, because she did not have POA for your mother.
Helpful Answer (0)
Reply to Patathome01
Report

If its worded so that your are a joint owner, not just having the ability to sign, then I say no you don't pay taxes. Because money being placed into that acct has already had taxes deducted. There is no way on a joint account whose money was deposited.

If signee only or POA, that money becomes part of the estate, IMO.
Talk tovthe bank to see how acct was set up, then talk to Probate. If it becomes partbof the estate then you pay taxes according to what you receive. We received almost 50k from my MILs estate and paid no income taxes on it.
Helpful Answer (0)
Reply to JoAnn29
Report
LakeErie Aug 24, 2024
Inheritances are not taxable.
(0)
Report
I believe it depends on who has legal authority to manage your mother's / parents legal affairs. I believe 'that person' is responsible to pay whatever is owing.

Obvious question: Did you ask / discuss this with your sister. If not, I wonder why not?

* Do you / did you have access to any financial documents (banking accounts, investments, etc.?)

* Who handled all these? and were accurate records kept of expenditures?
- Do you/someone have receipts for purchases?

It appears that you need to talk to your sister and find out who has legal authority to make these decisions. If there isn't a Will or anything designating anyone, then call an elder tax attorney and/or the IRS. You need to find out the legal / your legal obligations.

Gena / Touch Matters
Helpful Answer (0)
Reply to TouchMatters
Report

I might be wrong but I don’t think k joint accounts entitles you to do whatever with the money
check if a will was done
then get legal advice don’t guess on money
it has a habit of coming back to bite
Helpful Answer (0)
Reply to Jenny10
Report

If your sister is on their accounts, she was an "owner" of the accounts along with your parents. Now that your parents have passed, she is the sole owner of those accounts. You do not pay taxes on money you already own.
Helpful Answer (0)
Reply to Taarna
Report

When did mom pass away?
The owner of the account pays the taxes. That would be the first name on the account. Sisters name should be second name on account.
So if mom passed away in 2024 then on the 2024 taxes (done in 2025) then the owner (mom) will pay taxes on the interest on the bank account. The rest of the money becomes part of the estate and that is distributed among the beneficiaries.
Helpful Answer (0)
Reply to Ohwow323
Report

Taxes are only paid on interest earned on bank accounts. Unless there's a TON of money in those accounts, most of us earn interest literally in the PENNIES!
Helpful Answer (0)
Reply to lealonnie1
Report

Ask a Question
Subscribe to
Our Newsletter