[IwannabeaCPA2017]

Long story short, I have a relative who has a decent amount of money in her bank account and she is trying to close out and invest that money into mutual funds or stock to have it grow rather than to sit in bank. But due to health condition she’s afraid/concern, so if she were to cash out her bank account and use those money to put into an investment account under my name would that qualify as a gift? The amount we are looking at is well over the annual exclusion. What are some of her options to grow her money in the near future and save on potential taxes? Im not experience enough to offer her advice, so Im turning to the A71 community whoever has experience in financial planning.

[Tncincy]

It's not a gift. She's putting the account in your name but she still have access to the money. She should keep at least living expenses in her bank account, invest the money she wants to invest and make you the beneficiary should she pass away. What is her fear?

It begins with a 75
Been here too long as a cheerleader....ready to pass

[aaronmo]

^^^Not sure that's right…it doesn't feel right…but I'm also not an estate guy. If you were both on the account I might agree. If she puts you on an account, that's a gift.

This is usually done by attorneys, and the process is rarely followed as I understand it.

[Tim]

I fail to see why the account would need to be in your name for you to help her invest it. This sounds fishy.

[Recked]

So… you have no idea what you are doing but you want to divert a family members funds into an account in YOUR name, so you can then invest it.
Also, this family member is sick or possibly disabled, and is risk adverse, but you want to put the funds into money market or stocks, which have been on an upward trend, but also bordering on a higher level of volatility than has been experienced in 10 years.

I'm not sure this move is ethical, or moral.

If they are risk adverse and need this source of funds to live on I would point them towards some very secure investments.
Local banks aren't paying much in the way of interest rates, but you can find some decent CD's at credit unions for 2%, or use an online bank such as Capital One for 1% or a little more, or Ally bank for maybe 1.5% with no lock in.
I'm not sure how risk adverse they are, and the above rates won't really keep up with inflation, but the fed is raising rates to try and slow down inflation, and the market will most likely slow as well.

If you put the funds in your name and then lose a fortune in the market the courts would absolutely SHRED you. You are not at all qualified to be a financial advisor or planner.

If her goal is to leave the money to you, they can make you a beneficiary on the account.
Protect your family member, and yourself at the same time.

Apologies if I am misinterpreting your post, but that's the way it came across to me.

[aaronmo]

Recked…I suspect if we met, we'd be fast friends.

[Recked]

I suspect you are probably right…

[Tncincy]

I wouldn't take any of her money nor invest any of her money because if she lose the money to investing or the person pass away, The consequences are too great even if the intention is to calm her fear.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Bourne]

Take the money and flee the country

[Anonymous]

I know nothing about investment, but couldn't you just use power of attorney to manage her funds for her?

[Parthamis]

I do not understand why the money is going into YOUR name…

Why not HELP her create an investment portfolio, or work as her broker?

This sounds super sketchy that the money is transferring hands in a legal sense.

[Author]

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