Went through something similar. But my dad's nursing home cost much more and included nothing but room and board. If they gave him an as aspirin or a shot or a tube of toothpaste or a can of Ensure---well, anything other than the room and prepared menu meals---they charged us for it. If you haven't already, you might want to look into that. I know I provided a lot of his supplies just to keep those costs at a minimum. Although, having said that, I found the cost of Ensure was cheaper from the nursing home than what I paid in the store.
But anyway...gifting is no longer an option for her. But if she had started 15 years ago, she could have given $10,000/calendar year to each member of the family and she would not have been taxed. For example, she could have given 10,000 to your father, 10,000 to your mother, 10,000 to you and 10,000 to each brother and sister. The recipient is not taxed on the gift and the gift giver is not taxed if EACH gift per person does not exceed 10,000 in a year. The gift giver is taxed if he/she gives more that 10,000 to any one individual in a calendar year. Regarding the 3 year rule you mentioned, gifts given within that period may need to be returned--at least I believe that's what they said when it happened to my grandmother, but she had not given any gifts for more then 3 years prior to her entering the nursing home----and this was 10 years ago, so my memory is fuzzy at best on this issue.
Now I'm not sure, and I'm sure someone who posts will know, but I believe these gifts can have an effect on estate taxes if the estate exceeds $650,000. Just not sure about that.
Now, I have not dealt with taxes in a few years and never was an expert in estate planning, but this may be a starting point. In other words, please don't yell at me if I've made some mistakes--if they are there, they are strictly unintentional.
Good, useful thread topic.
Greta |
