Proving a gift is a gift?


K

Ken

Hi. My mother wants to give me a cash gift of significant
size. What do I need to do to prove it is a gift for tax
purposes or in the event that she might need to apply for
Medicaid for nursing home care in the future? I live in PA.

Any web sites with this type of info?

Thanks!

Ken
 
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B

Brad

Ken said:
Hi. My mother wants to give me a cash gift of significant
size. What do I need to do to prove it is a gift for tax
purposes or in the event that she might need to apply for
Medicaid for nursing home care in the future? I live in PA.

Any web sites with this type of info?
There are certain requirements for a donation to be
considered a gift.
1. donor competent to make a gift
2. a donee capable of receiving and possessing the gift
3. donative intent
4. actual delivery of the gift
5. acceptance of the gift

Your mother can gift you up to $11,000/year-double if she
is married.

If you are her employee, some portion of the gift might
be considered compensation.

I am not sure about the Medicaid part.

Brad in Phoenix
 
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A

Arthur Kamlet

Ken said:
Hi. My mother wants to give me a cash gift of significant
size. What do I need to do to prove it is a gift for tax
purposes or in the event that she might need to apply for
Medicaid for nursing home care in the future? I live in PA.
I suppose she could draw up a written document stating that
she is making a gift to oyu of $xxx and presenting it to you
on such and such a date.

She receives no deduction for the gift nor do you declare it
as income.

She would have to recapture the gift if she applies for
medicaid within so many months of that gift, 36 months in
Franklin County Ohio, for example.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 

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