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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Wisconsin resident questions. My mother is on Title 19 and

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Wisconsin resident questions. My mother is on Title 19 and her one year of spending down is up in a month. My father, who still lives in his home, wants to know if he can gift money to his children as a way of spending down. Some of my research indicates that he can give each child up to $13,000, with a $100,000 cap. Is this true? His monthly income is $3,800 and his assets from savings and life insurance policies is not that far over $52,000 if they look at what the policy is worth as of today versus when he/she passes. Which do they look at, the face value today of what it worth when they pass? My mother's life insurance policy is worth $5,000 today and $17,000 after she passes. Can they take some of her money even though she is now home with hospice care and expected to pass in the next couple of weeks?

Hi and welcome to JustAnswer:

 

The gift information you mention has to do with federal gift tax filing requirements. It has nothing to do with Title 19 provisions.

 

The Title 19 requirements are federal but are administered the states. For Title 19 purposes there is a 5 year look back period vs 1 year.

 

See the State of Wisconsin Department of Health Services Publication 79 pages 23 and beyond and specifically page 31 for the 5 year divestment info. (Link below)

 

http://www.dhs.wisconsin.gov/em/impubs/pubs/p-00079.pdf

 

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