Our clients are people of generosity.
They love to give (and receive) gifts during their lifetimes and they are committed to leaving legacies of generosity in the hearts of their families and in the bodies of their estate plans.
But beware- If you believe that you may need help paying for long term care in the future, then you should be extra mindful about gift-giving during your lifetime. Under federal Medicaid law, if you transfer certain assets within five years before applying for Medicaid, you will be ineligible for a period of time (called a transfer penalty), depending on how much money you transferred.
Gifts, loans, or charitable donations over a certain threshold can result in “penalizable transactions.”
If you’re an elder thinking about helping with tuition, loaning an adult child money for a down payment on a home, or giving other gifts, give us a call.
We can often walk you through different strategies that can reduce your risks while still accomplishing many of your generous goals.