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Inheritance Question
Posted on 7/18/12 at 8:03 am
Posted on 7/18/12 at 8:03 am
I have a family I know who has come into some inheritance money. One of the two people has been struggling after a surgery and can't work, and the other has been having to work out of his field for almost 3 years now. They are on the verge of losing their house, which has been up for short sale twice now. They ordered the inheritance in check form, and want to give it to me to keep for them so no one can ever come after it for any reason. How would you money experts do this?
My thoughts were a checking account, since they still need access it to to pay their mortgage until it runs out. That way I could give them internet access which at least has a little anonymity, but that still links it to them by use. My other concern was taxes having to be paid. Of course it's no sweat off my back because I will just pay taxes on it from the account itself, but they are in bad shape (obviously) and I'd like to minimize that. Any thoughts?
My thoughts were a checking account, since they still need access it to to pay their mortgage until it runs out. That way I could give them internet access which at least has a little anonymity, but that still links it to them by use. My other concern was taxes having to be paid. Of course it's no sweat off my back because I will just pay taxes on it from the account itself, but they are in bad shape (obviously) and I'd like to minimize that. Any thoughts?
5
Posted on 7/18/12 at 8:05 am to bojabu
I wouldn't get involved with that. It sounds like fraud. And, their creditors could get at it because it's fraudulent.
Posted on 7/18/12 at 8:05 am to bojabu
quote:i thought you were exempt from estate taxes up to like 5 mil
My other concern was taxes having to be paid
Posted on 7/18/12 at 8:11 am to Pilot Tiger
It's not fraud, I know both the family and the deceased. Reading up on what the $5mill exemption is real quick. Because elsewise, it's looking like $8,200 in taxes.
Posted on 7/18/12 at 8:13 am to bojabu
I believe you could be made the fiduciary of a trust and could be in charge of making all disbursements to the family. If you did not act in their best interest with the money you could face civil and criminal penalties though.
Posted on 7/18/12 at 8:18 am to Pilot Tiger
quote:
i thought you were exempt from estate taxes up to like 5 mil
In the OP's case, would it not be a gift as opposed to an inheritance?
Like someone else said, I would stay away. Just sounds like this will not end well.
Posted on 7/18/12 at 8:19 am to Beerinthepocket
quote:
I believe you could be made the fiduciary of a trust and could be in charge of making all disbursements to the family. If you did not act in their best interest with the money you could face civil and criminal penalties though.
If the money was left to them in trust, then you might be correct. But, they already have the checks (i.e., MONEY) and they are looking to literally hide it from their creditors while keeping dominion and control of the funds through a "friend".
Fraudulent Conveyance
Posted on 7/18/12 at 8:21 am to bojabu
quote:
want to give it to me to keep for them so no one can ever come after it for any reason.
I wouldn't want to have to explain that to a judge or the IRS. I'm not saying it couldn't be construed to be legal (such as a donation, which you later donate back), but I just wouldn't want to get in on that.
Posted on 7/18/12 at 8:35 am to rmc
Noted Turk, thanks for the info. The specific clause (that excludes them from Fraud.Conv.)about preferring to pay one debtor over another is exactly what they want. They are trying to keep their home at the cost of anything else that happens.
Posted on 7/18/12 at 8:59 am to bojabu
quote:
They are on the verge of losing their house, which has been up for short sale twice now.
where are their homes at? Pics?
Posted on 7/18/12 at 9:03 am to Chad504boy
Haha, too late, their mortgage company and Uncle Obama reworked their noted so they can stay put.
Posted on 7/18/12 at 9:44 am to bojabu
quote:
The specific clause (that excludes them from Fraud.Conv.)about preferring to pay one debtor over another is exactly what they want.
According to the original post, that's NOT what's going on here. They are fraudulently look to HIDE this money from their creditors by "giving" (wink, wink) it to a friend -- BUT, all parties to this agreement understand that it's not a gift (which could always come back into the bankruptcy estate anyway), but a devise to HIDE the funds. They'll always consider it THEIR money -- you're just holding it to screw over the creditors.
Like I said, stay as far away from this as possible.
Posted on 7/18/12 at 6:32 pm to bojabu
quote:
Haha, too late, their mortgage company and Uncle Obama reworked their noted so they can stay put.
tell us more, i know someone going through foreclosure and have tried doing this.
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