Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.The new rules, which took effect in February 2006, extend the "look back" period from three years to five. If an individual gives away money or property during the five-year look-back, it triggers a penalty period during which he or she is ineligible for government aid.
The person can certainly give up to $14000 to each individual and have no tax or reporting for the gifts.
They normally would look at the avergae cost of nursing home and the gifts mad ein that time frame.
Will there be any effect on her Medicare benefits, in the event she has to report her assets to them?
For medicare that is on the look back but not for taxation.
Will there be any effect on her Medicare benefits in the event she has to report her assets to Medicare &/or enters an assisted living facility in the future?
Yes, the gifts made during that time could reduce the amount of govt aid available.