Question for the Money Doctors
Question submitted on Jan 6, 2023.
QuestionMy 93 yr old mother had to move in with us, as she needed care...she has about 2400/month income,(which we use for her expenses, food, etc.) She also has $20.000 in the savings. We are NOT paid as caregivers...would it be legal for her to gift us enough money, to put our house back in order(carpet, piano moving, etc.), when she's deceased?, or would that be subject to "give-back" should she have to go on Medicaid for further care we are unable to provide?
You will need to consult with a Medicaid expert to see if she would qualify for Medicaid in case she needs long term care. For 2023 she can gift both of you $34,000 per year without any gift tax consequence. You will need to better understand your state's Medicaid payback or clawback provisions if she were take advantage of Medicaid for long term care.
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