As someone who recently navigated a similar situation with my father's estate, I wanted to add a few practical considerations that might help with your planning. One thing that caught my attention in your post is that you mention keeping the checking account separate from the trust "for easier access to funds for paying bills after she passes." Just be aware that many banks will temporarily freeze joint accounts when they're notified of a death, even when there's a surviving joint owner. This happened to us and created complications when we needed to pay final expenses quickly. If maintaining easy access for post-death expenses is a priority, you might want to consider keeping a smaller amount in the joint account (maybe $10-15k) and moving the larger balance into the trust. This would minimize any gift tax concerns while still providing the liquidity you're planning for. Also, regarding your question about the collectible scenario - the same gift tax principles would apply, but there's an additional consideration with inherited assets. When someone inherits property and then sells it, they get a "stepped-up basis" equal to the fair market value at the time of inheritance. So if your brother inherited a $50k collectible and immediately sold it for $50k, there would be no capital gains tax on the sale. But if he then gave you $25k from the proceeds, that transfer would still be subject to gift tax rules. The documentation strategies others have mentioned (letter of intent, memorandum, etc.) are really valuable, but getting the account structure right from the beginning is even better if it's feasible for your family's situation.

I've been following this discussion with great interest as I'm in a very similar situation with my elderly father. One aspect I haven't seen mentioned yet is the importance of communicating with the bank ahead of time about your intentions and the account structure. When we set up my dad's joint account, I made sure to have a conversation with the bank manager about what would happen when he passes away. They explained their specific procedures for handling joint accounts after a death, including what documentation they would need and how long any holds might last. Some banks are more flexible than others, and knowing their policies in advance can help you plan better. The bank also mentioned that having a letter on file from the account holder (your mom, in this case) stating the purpose of the joint ownership and her intentions for the funds can sometimes help streamline the process later. They said it's not legally required, but it can help clarify the situation for their internal reviews. Another thing I learned: some banks offer "convenience accounts" that are specifically designed for situations like yours, where an adult child helps manage a parent's finances. These accounts sometimes have different ownership structures that might avoid some of the gift tax complications you're concerned about. It might be worth having a conversation with your mom's bank about the best account structure for your specific goals. Every bank handles these situations slightly differently, so getting their input could help you make the most informed decision about whether to restructure things now or stick with your current approach.

I'm facing this exact same situation right now! I had Medicaid coverage from January through March of this year, and during February I started contributing to an HSA at my new job. I contributed about $200 before realizing the issue. From reading all these responses, it sounds like the key steps are: 1) Stop any ongoing HSA contributions immediately, 2) Contact the HSA administrator to do an excess contribution withdrawal, and 3) Get documentation from Medicaid showing exact coverage dates. One question I have that I didn't see fully addressed - if I withdraw the excess contributions now (in April), do I need to wait until I file my 2024 taxes to report this, or is there something I need to do immediately? I want to make sure I handle the tax implications correctly. Also, has anyone here dealt with this situation where the HSA contributions were made through pre-tax payroll deductions? I'm wondering if that complicates the withdrawal process at all since the money was already taken out pre-tax. Thanks to everyone who shared their experiences - this thread is incredibly helpful for those of us navigating this confusing situation!

I went through this exact situation about two years ago and want to share what I learned to hopefully save you some stress. The most important thing is that you caught this relatively early - six months of contributions is definitely fixable without major consequences. Here's what worked for me: First, I immediately contacted my HR department to stop all future HSA payroll deductions while I sorted things out. Then I called my HSA administrator (in my case it was HSA Bank) and explained that I had disqualifying Medicaid coverage during the months I contributed. They had a specific form for excess contribution withdrawals and the whole process took about two weeks. The trickiest part for me was getting the exact Medicaid coverage dates documented. My state's Medicaid office was incredibly hard to reach by phone, but I eventually got through and requested an official letter showing my coverage period. Having this documentation made me feel much more confident when filing my taxes. One thing that surprised me: when I withdrew the $800 I had contributed (plus about $15 in earnings), I didn't face any penalties because I did it before the tax filing deadline. I just had to pay regular income tax on the withdrawn amount, which honestly wasn't that bad. The key is acting quickly now that you know about the issue. Don't let this drag on - the IRS is pretty good at catching HSA/Medicaid overlaps in their computer systems, so it's much better to fix it yourself than wait for them to find it. You've got this!

Just wanted to share my experience since I was in a similar situation last year. I had about $800 in various Visa gift cards and successfully used them to pay part of my tax bill. A few key tips: 1. Definitely register ALL your gift cards first with your exact billing address before attempting payment - this is crucial or they'll be declined 2. I used Official Payments and the fee was about 1.87% which wasn't too bad 3. You can make multiple payments if needed, but you'll pay the convenience fee each time 4. Keep detailed records of each transaction - I had one gift card that didn't process correctly and needed the receipt to sort it out The whole process took me about 30 minutes once I had everything registered properly. Way better than scrambling to find cash! Just budget for those processing fees when you're calculating how much you can actually put toward your tax bill.

I actually just went through this process myself a few weeks ago! I had about $600 in Visa gift cards from the holidays and was able to use them successfully. Here's what worked for me: First, I registered each gift card online with my exact name and address that matches my tax return - this step is absolutely critical. Then I used PayUSAtax as my payment processor since they had slightly lower fees than the others (around 1.99% for my payment amount). One thing I learned the hard way - if you have multiple small gift cards, it might actually be more cost-effective to combine some purchases first to reduce the number of transactions and processing fees. I had five $100 cards and ended up paying the fee five separate times, which added up to about $60 in total fees. Also, make sure to do this well before your tax deadline. My first payment got held up for verification and took 3 business days to process, which would have been stressful if I'd waited until the last minute. The whole process is definitely doable, just plan ahead and budget for those processing fees when calculating how much you can actually put toward your tax bill!

I went through this exact situation last year! The key thing to remember is that Social Security survivor benefits for children are generally not taxable UNLESS your child has other significant income. You'll get a SSA-1099 form showing the total benefits received. As long as your child doesn't have other income sources (like significant investment income or wages), you typically won't need to report it. The threshold is pretty high - around $25,000 total income including half the SS benefits. Keep all your paperwork though, just in case you need it later. Hope this helps ease some stress during an already difficult time! 💙

Just went through this same situation with my daughter's survivor benefits. The confusion is totally understandable - there's so much conflicting info out there! What helped me was calling the IRS directly (yeah, long hold times but worth it). They confirmed that as long as your child doesn't have other income sources pushing them over the threshold, the survivor benefits alone typically won't be taxable. The SSA-1099 you receive will show the total benefits, but you likely won't need to report it. Keep that form though - it's important for your records. Hang in there, dealing with taxes on top of everything else is rough but you've got this! 💪

Does anyone know if mailing old returns affects how fast you get your refund? I heard the IRS is still backed up processing paper returns from 2021...

I'm in a similar boat with unfiled returns and want to share what I've learned from my tax preparer. The key thing to remember is that even though you can't e-file old returns, you still have time to claim those refunds - you have 3 years from the original due date. So for 2020, you have until April 2024, and for 2021 until April 2025. One tip that helped me: when you mail the returns, send them certified mail with return receipt requested. It costs a few extra dollars but you'll have proof the IRS received them, which is crucial if there are any questions later. Also include Form 1040X if you need to make any corrections after filing. The processing time for paper returns is brutal right now (6-12 months in some cases), but don't let that discourage you from filing. The IRS penalties and interest keep adding up if you owe money, and if you're due refunds, that money is just sitting there waiting for you. Better to get the ball rolling now than wait any longer.