Personal Finance Questions and Answers for Young Professionals

2 Responses to “difficult financial situation advice”

1. 
   sergik12 Says:
   January 3rd, 2008 at 11:31 am

   Need a little more info.

   Why can’t you mother open a checking account?
   After tax money or pre tax money?
   Can she open a brokerage account?

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2. 
   jboynton Says:
   January 6th, 2008 at 4:33 pm

   Although, you will ultimately need to have this money deposited into a checking account, you do not necessarily have to deposit the money into the account of the check holder. Your mother can endorse the check to you or anyone who has a checking account. Simply write on the back of the check, “This check is endorsed to (name), acct. number, and sign.” This check must be cleared by the authorized bank, and this will occur after the account holders bank has contacted the issuer’s bank. Banking issues can become complicated because each banking institution may have unique policies and procedures. I would recommend that you endorse the check to someone with a checking account.

   I would imagine that if this money is received as a bequest, it has already cleared probate and estate tax. Therefore, this money is not likely taxable at this time; however, you should be careful as to how you move this money because it will begin to incur capital gains if invested, or it will be impaired from interest growth if kept in a checking account. I would recommend that you speak with a financial advisor before moving this cash. For further information on how to increase this inheritance’s net worth at the minimal tax liability, please call our affiliated financial specialist at 617-816-5507. Our specialist is available during regular business hours and works with a team of investment specialists who are licensed financial advisors.

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