Re: stock transfer and income tax filing

From: Rich Carreiro <rlcarr@animato.arlington.ma.us>
Subject: Re: stock transfer and income tax filing
Date: Tue, 11 Jan 2000 21:25:38 -0500

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>Date: Tue, 11 Jan 2000 18:58:41 EST
>From: GetFlow28@aol.com
>
>My husband was recently contacted by the state social services department
>regarding a paternity claim being filed against him (I'm not sure what the
>accurate legal term is).  We fully understand that we will have obligations
>*if* the child turns out to be his (should have DNA results in about 5
>weeks).  But until that time, we are interested in protecting the well-being
>of our family.
>

>He has about $7000 in stocks that are currently in his name only.  He wants
>to transfer them to my name only.  Is there a way to do this and, if so, any
>opinions on the best way of doing this?

If the stock is held with a broker, open an account at the same brokerage
and have your husband submit the paperwork the broker requires to transfer
the account's assets to your new account.

HOWEVER, DO NOT DO THIS until you talk to a lawyer.  Starting to move stuff
around like this could get you guys in Big Trouble(tm) with the courts if
the child turns out to be his.  The court might nail your husband for trying
to ditch assets in order to avoid paying.  Or it might not.  But don't fiddle
around with it until you have advice from a lawyer.

>Will he need to "gift" them to me or are we able to simply transfer them
>since we are married?

Well, the transfer is a gift, but gifts between spouses "don't count" with
respect to the gift tax stuff, so that's not an issue.

>Also, any recommendations on filing our 1999 tax return under these
>circumstances?  Should we continue to file jointly or should we consider
>filing seperately?

Well, that depends on how much you trust your husband.  The thing
filing sperately does is make you not liable for the truthfulness of
your husband's return.  However, Married filing separately is almost
always the worst thing to do tax-wise.  I Am Not A Lawyer(tm), but I
don't see how whatever happens with respect to the potential
illegitimate child would have any bearing on whether you filed joint
or separately.

>We will be visiting with an attorney about some of these issues in the near
>future.

Good idea!

Rich Carreiro                            rlcarr@animato.arlington.ma.us

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