Savings Account????

[gary27]

Anybody help?

If i transfer a savings account into a family members name, will they be eligible for tax on it?? Even if the account doesn't mature for another 4 years

 

[mathepac]

Essentially you are gifting a sum of money (the current balance in the account) to a family member. Depending on the amount of money and your relationship to that person, CAT (gift tax) may be due on the gift. DIRT may be due upon maturity.

Without specific details it is difficult to give a definitive answer.

 

[gary27]

What happens if you owe the money to the person, are you still eligible for the tax?