Nicolosi & Associates' Trusts and Estates attorneys can help guide you on ways to reduce estate taxes or shelter assets in order to achieve Medicaid eligibility.
One simple way is to give some or all of your estate to your children or any other party during their lives in the form of gifts. Certain rules do apply, however. There is no actual limit on how much you may give during your lifetime, but if you give any individual more than $10,000 during a calendar year, you must file a gift tax return reporting the gift to the IRS. Also, the amount above $10,000 will be counted against the unified exempt equivalent that you may give tax-free during your life or upon your death.
This $10,000 figure is an exclusion from the gift tax-reporting requirement. You may give $10,000 to each of your children, their spouses, and your grandchildren, or any other party each year without reporting these gifts to the IRS. In addition, if you are married, your spouse can duplicate these gifts. For example, a married couple with four children can give away up to $80,000 a year with no gift tax implications. These gifts will not count as taxable income to your children.
Contact ustoday to speak with an experienced trusts & estates attorney.
