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If I  have a savings account in my name and i make my wife the beneficary, when i die does she have to pay taxes on the money? or does she just take over the account?&#xD;&#xA;thanks&#xD;&#xA;cd

cd329 · Answer

If I  have a savings account in my name and i make my wife the beneficary, when i die does she have to pay taxes on the money? or does she just take over the account?&#xD;&#xA;thanks&#xD;&#xA;cd

depeche2 · Answer

She would not pay tax on the principal.  Your estate would pay estate tax only if your total gross estate exceeded the exemption amount (currently Federal is $2 million; some states are less; a few states have an inheritance tax).

cd329 · Answer

[Quote: Originally Posted by depeche2] &#xD;&#xA;&#xD;&#xA;She would not pay tax on the principal.  Your estate would pay estate tax only if your total gross estate exceeded the exemption amount (currently Federal is $2 million; some states are less; a few states have an inheritance tax). [/Quote]&#xD;&#xA; &#xD;&#xA; &#xD;&#xA;Depeche,&#xD;&#xA;Thank you for the answer.  Looks like i wont have to worry about the tax thing, cause my estate is way way way less then 2 million, lolllllllll.&#xD;&#xA;Reason i opened a seperate savings account in just my name is because wife owns a business and even thou she has plenty of insurance the way people sue now adays, you can never be sure they wont try to get personal accounts and now that savings account only belongs to me.

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