Am I limited in the amount of tax-free gifts I can make? Yes, but there are two very different issues to consider: (1) the tax consequences of gifting and (2) the effect such gifts may have on your ability to get Medicaid to pay for your nursing home expenses. For tax purposes, you may gift away both up to $15,000.00 per year to any one person and $11 million over your lifetime, without any gift tax. However, even if your gifts are not taxable, they may disqualify you from getting Medicaid to pay for your nursing home expenses if you run out of money, and even gifts to charity are counted. That could have drastic consequences for you. This should be carefully discussed with a qualified and experienced Elderlaw attorney.
Attorney Jack N. Alpern