I have a BNY Mellon Investment Fund account designated to me and set up by my parents. On the statements the Client Name is in my parents name and the Designation is my name.

My financial advisor can't wrap their head around why I think I don't have to provide a gift letter for proof of deposit funds.

Are these funds considered a gift, and thus taxable through inheritance tax if my folks were to die in the next 7 years?

  • Too many double negatives. Please reword it. – RonJohn Jan 7 at 21:49
  • @RonJohn should I have to provide a gift letter for money that is designated to myself though a trust fund. – user93031 Jan 7 at 22:04
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    You need to edit the question itself. Thanks. – RonJohn Jan 7 at 22:05
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    Is your financial adviser a CFP, or -- better yet -- an estate lawyer? They're supposed to stay up on the law regarding this kind of thing. – RonJohn Jan 8 at 0:27
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    What do you mean by "proof of deposit" funds? Is a mortgage involved here? You need to tell the whole story if you want an accurate answer. If you are using the trust to support a mortgage, that is a totally different situation than a college fund. – Five Bagger Jan 8 at 2:51

A donation/contribution to a trust is not considered a gift as long as the beneficiary has a future interest in the gift.

If you are referring to a payable on death account than it is the same as your parents leaving you the monies when they die--except it avoids probate. Note that your parents have a large estate exemption so this would only be relevant if they have more than 11MM in assets.

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