This is how we’ve avoiding it. Dad and I own everything jointly. We have shared savings and checking accounts. I have POA for him and am his executor.
I already OWN everything I’m eventually going to get, so no inheritance taxes. Of course, there will be other taxes down the road when I liquidate some assets, but I can plan ahead for that.
I suggest anyone that has any amount of money from $10 on up do this with one of their adult children. Of course, it has to be someone you trust that won’t raid the accounts while you’re still breathing, LOL!
This cost us nothing but a trip to the bank to set up accounts and a few papers signed so I am already on his pension paperwork, etc. (He retired from a large insurance agency many years ago; NOT AIG, LOL!) If Dad marries again, he’s leaving things as is. A new wife is on her own and must have her own money house in order to bring to the marriage or he’s not playing.
Husband and I have our own wills set up so our Son can’t inherit anything (it stays in a trust) until he’s 25. We can bump that up to a later age if he doesn’t have his act together by then. ;)
And when he’s older, we’ll do the same for him; sharing assets while we’re still kickin’; if he turns out to be an honorable young man. If not, it can stay in a trust.
Someone just dying to rip our ‘preemptive’ actions to shreds will be along in...3...2...1... *SMIRK*
If you don’t get audited, you can get away with anything, but assets held in joint name with the right of survivorship are presumed to have been contributed entirely by the first to die and are included in his gross estate for federal tax purposes.