Legal Question in Elder Law in North Carolina

Re: monetary gifts to children

There are many different answers to this question. For that reason, I suggest that your dad see an experienced elderlaw attorney to get the right answer for his particular situation.

For gift tax purposes, gifts of under $13,000 per person do not require gift tax returns.

However, I suspect that you are asking about this for future Medicaid eligibility. In that case, a gift of almost any amount, even small gifts added together, will create a period of ineligibility for Medicaid purposes if the person applies for Medicaid within the next five years.

Moreover, particularly in the current economic times, I do not advise parents to make outright gifts to children, since a gift into an irrevocable trust will work just as well for Medicaid and is much safer. What child wants to come to the parent to say that they just lost their job, and the credit card companies took the money that mom or dad gave to them, and that mom or dad were anticipating could be used for them if they needed care in the next five years? A trust is a good idea.

VA benefits, and Special Assistance also have different rules. You get the idea: everyone's situation is different and this is a question which needs to be carefully considered and fully understood before any gifts at all are made.