How much time must expire before a child is not liable for the money a parent givesthemif the parent is in a nursing home?
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How much time must expire before a child is not liable for the money a parent givesthemif the parent is in a nursing home?
Both father and mother are in a nursing home. It is costing about $7000 a month. They want to give some money to their children before the nursing home takes it all. They will run out of money in about 4 years. They have a living trust and my brother has POA.
Asked on March 11, 2012 under Estate Planning, Alaska
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the gifts are done to each child as part of a valid estate planning process through an experienced Wills and trust attorney, no part of the money given to each child on a yearly basis should in the end be subject to a valid demand by the nursing home so long as the nursing home's bill is paid in full and not in arrears. Presently the maximum gift to a person tax free is $13,000 per year under IRS rules.
I suggest that you and your brother consult with a Wills and trust attorney about a possible gifting process assuming your parents are deemed legally able to do so or if the poa for your brother allows such.
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