husband sick , we have savings, i would like to give my children gift of monies. how much can i give them before being penalized in the event my husband must enter nursing home?
2007-02-08 03:52:02 · 6 answers · asked by CJ 2 in Business & Finance ➔ Personal Finance
the amount of money i have saved is not alot just a few thousand. but id like to be able to give my children a little without them having to give it back. they do take care of themslves.
2007-02-08 08:40:38 · update #1
Nursing homes don't charge penalties. They charge for their services....if you don't want to pay their prices, don't use their services.
Sounds like you've been saving for a rainy day and the storm clouds are coming.
And one other thing: I don't want to pay your bills either.
2007-02-08 07:25:10 · answer #1 · answered by derek 4 · 0⤊ 0⤋
An irrevocable trust is a GOOD way to go. See attorney for that.
If you trust your kids to help you out after you have given them all the money then you can give each child $10,000 and your husband can give $10,000 so if you have 4 kids you just got rid of $80,000. This can only happen annually without any tax consequence to your children. DO it now and then in Jan. next year do it again if you have a sizeable estate. If you have a super size estate, head to the lawyers office and get the trust going !!!! No nursing home can touch it !
: )
2007-02-08 04:39:14 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
We have been through this twice in the past 2 years, placing everything in a trust, transfering assets or giving money away will still be counted against your assets if it happens sooner than 5 years before the need for long term care. If you have any major assets - for instance a vacation home, they will have to be liquidated and that cash used, before medicaid will kick in.
If you and your husband live in the same house, only half the value will be considered as ability to pay, but you will NOT have to liquidate the primary residence in order to qualify.
It was really frustrating how it worked. It seemed that elderly and their heirs are penalized when long term is needed.
You can give away all the money you want, and not be penalized for it, in medicaid's eyes, it will just be counted towards your ability to pay if it was less than 5 years before application of benefits.
I would still consult a estate planning lawyer for asset protection for the best ideas. We are only in our 30's are in the process of puting assets in a trust as they become paid off.
2007-02-08 04:17:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You need either a lawyer or accountant familiar with the rules in your state.
You used to be able to give your children gifts up to $10,000 a year without any penalties but I believe there are now restrictions on that to avoid a person giving away his stuff so that they need to be supported in a Nursing home by Government.
You might start with your bank manager.
2007-02-08 04:04:57 · answer #4 · answered by mark 6 · 0⤊ 0⤋
Where I live you have to have given it away 3 years or more before you enter the nursing home.
You can put it all in a trust, I think, and then you won't be penalized.
You really ought to consult a lawyer on this.
IMO you need to take care of yourself and let your kids worry about themselves.
2007-02-08 04:25:06 · answer #5 · answered by parsonsel 6 · 0⤊ 0⤋
It's way better if you see an attorney and have him draw up a will and an irrevocable trust. This means your children if they are of age, are the executors of your estate, and they won't have to go through probate at all.
2007-02-08 03:56:35 · answer #6 · answered by Big Bear 7 · 0⤊ 1⤋