Legal Question in Wills and Trusts in Minnesota

money gifts

i have a friend who was given, through a divorce, money from her ex-husbands 401K plan. She needs to liquidate these assets to qualify for medical assistance. Is it true she can give a one time gift to her kids of money and if so how much?

thank you.


Asked on 3/13/09, 3:17 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: money gifts

I think your friend needs to talk to an estate planning attorney. I find it hard to believe that liquidating a 401k is needed for medical assistance. 401ks are typically exempt assets and best kept there until such time that she is old enough to receive annuity payments from it. Giving gifts to protect money and qualify for medical assistance right before, is considered a fraudulent transfer and not a good idea.

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Answered on 3/15/09, 7:24 am


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