Legal Question in Elder Law in North Carolina

Re: investment account inherit or gift it.

If Dad is in good health my first choice would be to consider an irrevocable protector trust created by Dad. Done properly, that would have the fewest tax ramifications and would protect any future appreciation. I would apply that to both the investment account as well as for the house, although I would probably use 2 separate trusts...one for the house, and one for the investments.

First question is going to be what does Dad wants to do? Second question is going to be, if Dad cannot make the gift himself, then does the POA includes sufficient gifting provisions to accomplish gifts if Dad is not able to make the gifts himself?

I generally start with trust planning rather than advising gifting directly to children now that the DRA rules are in effect and a trust has significant tax and protection advantages. You need to work with an experienced elder law attorney in these matters, who is comfortable with irrevocable trust planning.

If Dad is not in good health, then gifting may not be the right answer, or it may involving gifting part of the assets. Gifting will create a one month penalty for Medicaid eligibility, if Dad applies for Medicaid for nursing home care any time within five years after the gift has been made.

If Dad is in ill health, I would also want to know if he is a wartime veteran, since there may be valuable benefits available to him as a result of his service and current expenses/care needs.

Best regards, Dennis