Monday, November 12, 2012

Indiana Inheritance Tax - possibly on your own money - beware!

A couple got quite a surprise after doing what they thought was a wise decision.  As they got older, they added their daughters name to their bank accounts so she would have access to their funds in case of emergency.
An unexpected tragedy saw their daughter pass away a couple years later.  Two months after her death, they received a tax bill on their own bank account funds!  According to the state law, 1/3 of their own money was "inherited".
Banks are not required to inform customers of this situation - so beware!  Indiana is one of 6 states currently that tax inheritances.  Four states exempt parents (but not Indiana).
Bank officials suggest simply granting a child power of attorney to avoid this situation.
Be sure to consult a professional before doing anything with your money!

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