What is the name of your state? CA
Mom has recently moved from her large home to live with my brother. She is still very competent mentally, but not physically able to live independently. She is fairly wealthy. How do we determine what is reasonable reimbursement for my brother to have Mom living with him? She has her own room and bath, three meals a day, laundry done, etc.. My brother and his wife do not want to ask for anything unreasonable nor have to pay income taxes on anything they charge. In this situation, is anything she gives them over the gift tax exclusion going to be considered taxable as a gift?
Mom does have a living trust, and I am the trustee and eventual executor. All of the siblings are in agreement that the best place for her right now is with my brother.
Thank you.
Mom has recently moved from her large home to live with my brother. She is still very competent mentally, but not physically able to live independently. She is fairly wealthy. How do we determine what is reasonable reimbursement for my brother to have Mom living with him? She has her own room and bath, three meals a day, laundry done, etc.. My brother and his wife do not want to ask for anything unreasonable nor have to pay income taxes on anything they charge. In this situation, is anything she gives them over the gift tax exclusion going to be considered taxable as a gift?
Mom does have a living trust, and I am the trustee and eventual executor. All of the siblings are in agreement that the best place for her right now is with my brother.
Thank you.