Question here on the possible tax issues arising from an unusual joint account.
Here goes.
My mother has a mildly mentally handicapped sister. Her mother wants her to open a joint account in my mothers and sisters name. My grandmother intends to lodge money from time to time (not sure how much we're talking about, relatively small I'd imagine). The idea is that when my grandmother dies my mother will have joint control of this savings account with her sister and can use it to take care of her sister.
What are the tax implications of this? I would rekon that the lodgements would amount to more than the 2k you can gift to a family member during a year, so would the revenue see this as some kind of taxable income?
Any advise here would be greatly appreciated.
Here goes.
My mother has a mildly mentally handicapped sister. Her mother wants her to open a joint account in my mothers and sisters name. My grandmother intends to lodge money from time to time (not sure how much we're talking about, relatively small I'd imagine). The idea is that when my grandmother dies my mother will have joint control of this savings account with her sister and can use it to take care of her sister.
What are the tax implications of this? I would rekon that the lodgements would amount to more than the 2k you can gift to a family member during a year, so would the revenue see this as some kind of taxable income?
Any advise here would be greatly appreciated.