• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Alpern Law Firm

Attorneys & Counselors At Law

CALL US TODAY
(800) 307-5544
(330) 394-1501

Seminars/Webinars
  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Multimedia
    • News & Events
  • Estate Planning
    • Asset Protection & Business Planning
    • Estate and Gift Tax Calculations
    • Estate Planning Services
    • Elder Law & Medicaid Services
    • Family-Owned Businesses & Farms
    • Legacy Planning
    • LGBTQ Estate Planning
    • Powers of Attorney
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Elder Law
    • Are You A Caregiver?
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Seminars/Webinars
  • Resources
    • Elder Law Resources
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Definitions
      • Estate Planning Reports
      • Estate Planning Checkup
      • Is Your Estate Plan Outdated?
      • Incapacity Planning Definitions
      • Top 10 Estate and Legacy Planning Techniques
    • Educational Alerts
    • Frequently Asked Questions
      • Estate Planning FAQ’s
      • Incapacity Planning FAQs
      • LGBTQ Estate Planning FAQs
      • Trust Administration & Probate FAQs
    • LGBTQ Resources
    • Published Books
    • Special Needs Resources
    • Trust Administration & Probate
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Blog
  • Contact Us
Home / General / To Gift or Not to Gift in 2012: That Is the Question

To Gift or Not to Gift in 2012: That Is the Question

January 14, 2012 by Jack N. Alpern, Estate Planning Attorney

Congress has afforded all of us an unprecedented—and probably never to be seen again—opportunity to make significant gifts to our children (and grandchildren), thereby reducing the estate taxes which could hit our families when we die. For the remainder of 2012, each of us is permitted to make gifts totaling up to $5.0 million to our offspring without any federal gift taxes.  That amount will fall to $1.0 million for each of us on January 1, 2013.  On paper, it appears that making significant gifts this year makes sense, if we are concerned that our estates will exceed $1.0 million in 2013 and thereafter.  However, does such a strategy make sense for you and your family?

First, it is important to remember that you must keep enough assets in your name so that you can provide for yourself as you age.  In doing that, remember that a change in your health could dramatically increase your cost of living.  Relying on children to take care of you if you run out of money carries with it great risk.  Some children can barely afford their own living expenses; others simply don’t care about their parents.

Secondly, any gift can also affect your ability to have your nursing home costs paid by the state in which you live if you run out of money.  Ohio has a 5-year “look-back”rule, which provides that you are not eligible for Medicaid (the State funds which pay the nursing home costs for those who run out of money) if you make a gift within five years of applying for Medicaid.  The period of your ineligibility depends upon the size of the gift.  So, while making gifts to reduce your estate may seem like the right thing to do, it could have bad consequences for you if you end up in a nursing home.

The conclusion:  it is really important to get competent advice from an Estate Planning and Elderlaw attorney before beginning any type of gifting strategy.

Jack N. Alpern, Esq.

The Alpern Law Firm

  • Author
  • Recent Posts
Jack N. Alpern, Estate Planning Attorney
Latest posts by Jack N. Alpern, Estate Planning Attorney (see all)
  • The Inflation Reduction Act - September 13, 2022
  • How Do I Trust Thee…Part II - July 1, 2022
  • How Do I Trust Thee…Part I - July 1, 2022

Filed Under: General, Wills & Trusts Tagged With: Estate Planning, estate taxes, Financial Planning, Gifts, Incapacity Planning, inheritance planning, retirement planning, wills

Primary Sidebar

Address

HOWLAND
8600 East Market Street Suite 1
Howland (Warren), Ohio 44484
United States (US)
Phone: (330) 394-1501
Secondary phone: (800) 307-5544

Office Hours

Monday8:30 AM - 5:00 PM
Tuesday8:30 AM - 5:00 PM
Wednesday8:30 AM - 5:00 PM
Thursday8:30 AM - 5:00 PM
Friday8:30 AM - 5:00 PM

Closed for lunch from 12:00 pm-1:00 pm

Map

map for The Alpern Law Firm office

Footer

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
The Alpern Law Firm logo

© 2023 American Academy of Estate Planning Attorneys, Inc.| Disclaimer | Privacy Policy | Sitemap