2 ms·

It is illegal and it is tax evasion in some jurisdictions. 1) Transferring your money directly would allow to avoid inheritance tax. 2) Some jurisdictions hav

It is illegal and it is tax evasion in some jurisdictions. 1) Transferring your money directly would allow to avoid inheritance tax. 2) Some jurisdictions have hard limits on what you can "donate" to your children. It can be "low" like 100k per 10 years.

dmurray 9y ago
No, it becomes tax evasion if you do this and then fail to pay the applicable tax on it. In the same way, it's not tax evasion to have a successful business, say, making a million dollars selling shoes, even though there are limits on how much money you can make selling shoes before you have to pay tax on it. It is tax evasion if you make a million dollars of taxable income and only pay enough tax for half a million. Do you have a specific jurisdiction in mind where this transfer would be tax evasion?
- user5994461 9y ago
  It looks like we're both in agreement that there are legal requirements beyond "just transfer all the money to my son". Point being. When the client ask "transfer the money to my son and close my account", he usually doesn't mean "take 30% off, transfer what's left to my son and close the account". You can have a look at France. I am not sure what paperwork is needed to make it legitimately, it's non trivial.
  - jonknee 9y ago
    In the context provided it sounds like the client meant his son would be taking over as the steward of investvesting his money and was going to put it into BTC. This is not illegal in any way. It’s not any different than having an investment manager in the first place, other than it sounds like an objectively terrible idea. It’s pretty common to move around retirement accounts in the US, the most popular type are tied with your job and frequently move when you change employers.
  - tim333 9y ago
    In the UK on the other hand there is no paperwork at the time. You just transfer it. If the old guy dies within something like 8 years though it should be included in his estate.

dmurray 9y ago

No, it becomes tax evasion if you do this and then fail to pay the applicable tax on it. In the same way, it's not tax evasion to have a successful business, say, making a million dollars selling shoes, even though there are limits on how much money you can make selling shoes before you have to pay tax on it. It is tax evasion if you make a million dollars of taxable income and only pay enough tax for half a million. Do you have a specific jurisdiction in mind where this transfer would be tax evasion?

user5994461 9y ago
It looks like we're both in agreement that there are legal requirements beyond "just transfer all the money to my son". Point being. When the client ask "transfer the money to my son and close my account", he usually doesn't mean "take 30% off, transfer what's left to my son and close the account". You can have a look at France. I am not sure what paperwork is needed to make it legitimately, it's non trivial.
- jonknee 9y ago
  In the context provided it sounds like the client meant his son would be taking over as the steward of investvesting his money and was going to put it into BTC. This is not illegal in any way. It’s not any different than having an investment manager in the first place, other than it sounds like an objectively terrible idea. It’s pretty common to move around retirement accounts in the US, the most popular type are tied with your job and frequently move when you change employers.
- tim333 9y ago
  In the UK on the other hand there is no paperwork at the time. You just transfer it. If the old guy dies within something like 8 years though it should be included in his estate.