Re: Transfer of assets

From: "L. Chen" <am302@freenet.buffalo.edu>
Subject: Re: Transfer of assets
Date: Tue, 11 Apr 2000 18:36:16 -0400 (EDT)

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> From: "Alice Goodman" <agoodman@seanet.com>

> I have a brokerage account with money in just my name.  I am not married to
> my partner and we don't plan on it currently.  If I open a 2nd account, put
> both our names on it, and then journal all the assets from the single owner
> account to the joint owner account, will this be a taxable event for my
> partner?   Would this take away from the $650,000 (I think) limit on Estate
> Inheritance?  How would this be perceived?    IF there are Capital Gains at
> the end of the year on this account, do we have to take them 50/50 or can
> whoever would benefit most (or least) from them take all of them or none of
> them.  Does it matter who sourced the original money (I did, or actually my
> Mother did) in any of this?

I am not a proponent for joint accounts -- esp. when you are not married.  A
lot of things *could* happen from here to eternity.  If you want your partner
to have the money in that brokerage account, change the titling for that
account to "Alice Goodman, in Trust for your partner" or the equivalent for
your state.  That type of account means that when you die, that brokerage
account will pass on to your partner -- regardless of what your will or State
law might say.  During your life time, it is your account and you can change
the type of that account at will. 

If you have sufficient asset -- over that $675K(?) -- it is best to consult an
estate lawyer for estate planning.  You need a plan to handle the
unexpected/unlikely situations.  To try to do it yourself may be penny wise
and pound foolish.  The lawyer probably have other suggestions to achieve your
objective.


> Part II of this.. if I sell a Mutual Fund and buy another in a non-IRA, that
> is considered a taxable event for Capital Gains, yes?   What if the funds
> are in the same family such as Janus WW to Janus Equity, or something like
> that.  Is there anyway to move between funds in non-IRA accounts and not
> have the sale trigger Capital Gains?

All are taxable events.


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