Veteran Transferring a Partial Interest in Property to Person in Household
A veteran has a $10,000 CD. The veteran adds an adult (non-helpless) child who lives in the same household as joint owner of the CD.
The legal effect of this transaction is to give each joint owner an undivided one-half interest in the CD. The value of the CD is still $10,000 for net worth purposes and all of the interest earned by the CD is counted as income in determining the veteran’s IVAP.
Note: This is the case regardless of who reports the income from the CD for IRS purposes.Tags: certificate of deposit, gift, legal, transfer, veteran, veterans household