Question about safe deposit box at bank

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You don't have to but the bank must report that you have a safety deposit box to the IRS. This is a relatively new rule so beware.

What purpose does this serve? The bank reporting the box to the IRS... Is it so that the IRS can come after what's in the box after you die?

Or beforehand if they suspect that you are up to something or underreporting (or you're just an unlucky randomized audit).

and needless to say: so that the IRS can make sure to collect the inheritance tax from your inheritors, plus fines and interest, if they "forget" to pay the tax.

So for posessions like jewelry, for example. How can the IRS make sure you pay an inheritance tax on this? Are they going to have a representative there when you open the box and inspect the contects? I don't get how the inheritance tax can be enforced on a safe deposit box and its contents as pp suggests?

Speak to a tax expert. I *think* that the inheritor will not have to pay estate tax but they may have to pay long-term capital gains.

Nooooooo. There still exists a stepped-up basis for inherited assets. The estate itself pays any tax due. There are no capital gains taxes involved.

"If your sale [of inherited assets] will result in a profit, it automatically qualifies for the maximum rate on long-term capital gains, regardless of how long the inherited shares were actually owned by the decedent or you. If you sell at a loss, it will be a long-term capital loss"

http://www.smartmoney.com/taxes/income/taxes-on-investments-received-as-a-gift-or-inheritance-9533/

That was the law in 2010, for one year only, when the estate tax was repealed. With the repeal of the estate tax, the step-up in basis also went away.

But the estate tax has been back since 2011. Now step-up is back, along with the estate tax. There's no capital gains issues now.

[Anonymous]

It's illegal to store cash in a safe deposit box.

[Anonymous]

Anonymous wrote:It's illegal to store cash in a safe deposit box.

says who?

[Anonymous]

Anonymous wrote:It's illegal to store cash in a safe deposit box.

What law makes it illegal?

[Anonymous]

Your taking cash out of circulation. Read the lease w the bank. It will say no cash, no firearms.

[Anonymous]

there is no federal law against storing cash in a safe deposit box

[Anonymous]

Anonymous wrote:Your taking cash out of circulation. Read the lease w the bank. It will say no cash, no firearms.

So does this mean I can store a money order or travelers checks then?

[Anonymous]

I don't agree with the advice to store cash in the SD box anyway. OP, if I were you, I'd get my other added as a signatory on your checking account and make her a joint owner, that way she really can step in right away. Also start thinking about who your mom's back up should be.

[Anonymous]

Anonymous wrote:I don't agree with the advice to store cash in the SD box anyway. OP, if I were you, I'd get my other added as a signatory on your checking account and make her a joint owner, that way she really can step in right away. Also start thinking about who your mom's back up should be.

OP here. I am not sure that adding my mom to my bank account is a good idea because she is currently in debt and has companies looking to collect money from her. For this reason she cannot keep her money in a bank account.

I dont want her to be financially burdened by funeral arrangements and any other short term costs associated with my passing and this is the reason I would want to keep some cash there that she can use for this purpose.

I wish I could give her more but I would be heartbroken to know that any money I have given her was taken by debt collectors.


My other concern is if my mom for some reason is unable to carry out my plans I have no one else. I dont have any other family.

I'm planning to leave the car title and other money to my infant but there is no one else that I have to make sure that my infant will get what is rightfully his If my mom didnt have the debt issues I would completely leave everything to her to distribute according to my infant but again I dont want any creditors coming after her and taking everything.

[Anonymous]

Anonymous wrote:Do you have to declare to the bank what's inside of the safe deposit box?

Could I place an envelope of money in the box, instead of keeping it in an account at the bank, without disclosing the contents of the box to the bank?

Of course not - the whole point of a safe deposit box is the privacy and safe keeping. Go ahead and store the money you're going to sock away until you divorce your husband there!

[Anonymous]

Anonymous wrote:You don't have to tell them what is in the box...

Although I think there are common sense rules prohibiting explosives, etc.

But, I put my will, $5,000 in cash, and some jewelry into ou box. Bank doesn't know the contents.

This is a bad place for your will - it can take months or years for someone else to get access to your safe deposit box. Your will should be with your lawyer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't agree with the advice to store cash in the SD box anyway. OP, if I were you, I'd get my other added as a signatory on your checking account and make her a joint owner, that way she really can step in right away. Also start thinking about who your mom's back up should be.

OP here. I am not sure that adding my mom to my bank account is a good idea because she is currently in debt and has companies looking to collect money from her. For this reason she cannot keep her money in a bank account.

I dont want her to be financially burdened by funeral arrangements and any other short term costs associated with my passing and this is the reason I would want to keep some cash there that she can use for this purpose.

I wish I could give her more but I would be heartbroken to know that any money I have given her was taken by debt collectors.


My other concern is if my mom for some reason is unable to carry out my plans I have no one else. I dont have any other family.

I'm planning to leave the car title and other money to my infant but there is no one else that I have to make sure that my infant will get what is rightfully his If my mom didnt have the debt issues I would completely leave everything to her to distribute according to my infant but again I dont want any creditors coming after her and taking everything.

That's ridiculous. She incurred debts, she borrowed money from those people, they deserve to get it paid back.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't agree with the advice to store cash in the SD box anyway. OP, if I were you, I'd get my other added as a signatory on your checking account and make her a joint owner, that way she really can step in right away. Also start thinking about who your mom's back up should be.

OP here. I am not sure that adding my mom to my bank account is a good idea because she is currently in debt and has companies looking to collect money from her. For this reason she cannot keep her money in a bank account.

I dont want her to be financially burdened by funeral arrangements and any other short term costs associated with my passing and this is the reason I would want to keep some cash there that she can use for this purpose.

I wish I could give her more but I would be heartbroken to know that any money I have given her was taken by debt collectors.


My other concern is if my mom for some reason is unable to carry out my plans I have no one else. I dont have any other family.

I'm planning to leave the car title and other money to my infant but there is no one else that I have to make sure that my infant will get what is rightfully his If my mom didnt have the debt issues I would completely leave everything to her to distribute according to my infant but again I dont want any creditors coming after her and taking everything.

OP, you need to set up a trust so that all of your assets are in your child's name, not your mom's name.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't agree with the advice to store cash in the SD box anyway. OP, if I were you, I'd get my other added as a signatory on your checking account and make her a joint owner, that way she really can step in right away. Also start thinking about who your mom's back up should be.

OP here. I am not sure that adding my mom to my bank account is a good idea because she is currently in debt and has companies looking to collect money from her. For this reason she cannot keep her money in a bank account.

I dont want her to be financially burdened by funeral arrangements and any other short term costs associated with my passing and this is the reason I would want to keep some cash there that she can use for this purpose.

I wish I could give her more but I would be heartbroken to know that any money I have given her was taken by debt collectors.


My other concern is if my mom for some reason is unable to carry out my plans I have no one else. I dont have any other family.

I'm planning to leave the car title and other money to my infant but there is no one else that I have to make sure that my infant will get what is rightfully his If my mom didnt have the debt issues I would completely leave everything to her to distribute according to my infant but again I dont want any creditors coming after her and taking everything.

That's ridiculous. She incurred debts, she borrowed money from those people, they deserve to get it paid back.

Op here. I agree that they should be paid back. In fact IMO she shouldnt have gotten herself into this position in the first place.

However I do not agree that they should be paid back with money that I have set aside for my son that she has control over. While they deserve to get their money back they dont deserve to take my money away from my son and this is why I am not going to put any money in her name.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't agree with the advice to store cash in the SD box anyway. OP, if I were you, I'd get my other added as a signatory on your checking account and make her a joint owner, that way she really can step in right away. Also start thinking about who your mom's back up should be.

OP here. I am not sure that adding my mom to my bank account is a good idea because she is currently in debt and has companies looking to collect money from her. For this reason she cannot keep her money in a bank account.

I dont want her to be financially burdened by funeral arrangements and any other short term costs associated with my passing and this is the reason I would want to keep some cash there that she can use for this purpose.

I wish I could give her more but I would be heartbroken to know that any money I have given her was taken by debt collectors.


My other concern is if my mom for some reason is unable to carry out my plans I have no one else. I dont have any other family.

I'm planning to leave the car title and other money to my infant but there is no one else that I have to make sure that my infant will get what is rightfully his If my mom didnt have the debt issues I would completely leave everything to her to distribute according to my infant but again I dont want any creditors coming after her and taking everything.

OP, you need to set up a trust so that all of your assets are in your child's name, not your mom's name.

Op here. Thank you so much. This is great advice. Im going to do some research on how to start a trust now.