In a nutshell, it might be better for your mom to put the home in a living trust that allows her to control the home while she is alive and allows you to inherit the home through the trust upon her death.
Gifting sounds pretty simple, but there are many ways to do it, and several tax ramifications to be aware of as well.
Gifting sounds pretty simple, but there are many ways to do it. There are also several tax ramifications to be aware of.
As parents, we often want to help our adult children who need a financial boost. Many times, this assistance comes in the form of a loan.
If you’ve heard of trust funds but don’t know what they are or how they work, you’re not alone. Many people know just one key fact about trust funds: they’re set up by the ultra-wealthy as a way to protect passing on significant sums of money to family, friends or entities (charities, for example) after they pass away.
Having an estate plan is among the most important things you can do for your loved ones. It is, however, a task many of us dread and put off dealing with until later in life. If there is one thing we can recommend, it is that it is never too early to start planning. However, it can be too late. Do you have an estate plan that will provide for your loved ones, in the event of death or upon incapacity?
QUOTE Effective long-term care planning can require gifting assets to a spouse or child. In Medicaid cases, assets must be transferred to the community spouse
If you’ve heard anything about Medicaid, you’ve probably heard about the lookback period. In Iowa, the lookback period is the period of time starting with the day you apply for Medicaid and extending back through time for sixty months. We break that definition down after the jump. [Read More]
If you can’t prove you didn’t make a transfer to get on Medicaid, that transfer becomes a disallowed transfer. And that’s bad because a disallowed transfer means a penalty period will be imposed, delaying the time you are allowed to receive Medicaid coverage for the nursing home. The real question becomes: how do you calculate the penalty period? [Read More]
The length of the penalty period depends on the value of the assets transferred.
A transfer occurs anytime you sell, trade, or give away money or property. Sometimes a transfer is for fair value, such as when you trade in your car or buy groceries. Sometimes, though, you make a transfer without expecting anything in return – like a birthday or Christmas gift. This is called a disallowed transfer, and it means you will not be eligible for Medicaid for a certain period of time called the penalty period. [Read More]
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