Hi there. My name is ***** ***** I look forward to helping you.
There is indeed a 5-year lookback period so any gifts made during the five year period will impact his eligibility. Thus, if 5 years of nursing care costs are set aside, then he would be set for 5 years and could get beyond the 5 year period even if he had to needed nursing care today. But, he's not limited by the annual gift exclusion amount..which by the way is now $14,000/year, not $12,000. In addition to the annual exclusion gift allowance per doneet, for any amounts in excess of the $14,000 in a year, each person has a $5,430,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,430,000 in gifts over and above the $14,000 annual gift exclusion amount without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative additional gifts have exceeded the $5,430,000.
Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!