Legal Question in Tax Law in Florida

Re: paying taxes

Your facts are a little confusing, and there is some concern about having a joint account between your mother and only one of her children. Income taxes are paid by the person whose social security number is on the account, which I will presume is your mother. Depending how much the total value of assets are when your mother dies, determines if any estate or inheritance taxes will be due. The amount varies over time, so a specific possible tax cannot be calculated, if any, without knowing how much is involved. Should your mother die, with or without a Will, the account that has your sister's name will go to your sister, even if the Will states otherwise, so you will be subject to your sister's splitting the proceeds. You have not stated why her name was added to the account, and this could cause problems when mom dies, if the reasons are not clearly spelled out (maybe in mom's Will). You have an exposure that might require litigation between you and your sister when mom dies, so this needs to be handled while she is still alive.

Re: paying taxes

I am not sure which type of tax you are concerned about.

Because your mother gave your sister money, your mother may currently have a gift tax issue.

If your mother passes away, there may be estate tax due if the estate is large enough (currently $1.5 million-federal; $1 million in NYS).

Once the beneficiaries of your mother's estate (you and your sister) receive her property, they will individually be responsible to pay any income tax that may be due on the income derrived from the property each year.

If you need assistance in estate planning, please feel free to contact me (718-491-3345).