gift tax/nursing home

[kjranney]

What is the name of your state?What is the name of your state? New York

I currently have $30,000 dollars sitting in a savings account in my name. This money was given to me toward the end of 2004 by my mother and father – $9,995 of it is from a recent house sale (my grandmother’s) and the balance is from their Social Security money. I’ve read a lot of gift tax info but not sure what applies to my situation. Can someone tell me who (between my mom and dad/wife and I) has to pay a gift tax? Also, will someone have to claim this on their 2005 income taxes?

I’m also worried about the somewhat near future nursing home scenario. I don’t want to get in trouble receiving money that my mother feels she needs to “get rid” of. What’s the best way to deal with this type of situation?

Thanks in advance!

 

[abezon]

They had $30,000 sitting in a bank & didn't think they could afford to go see an estate planner & ask about how a gifting program works?? They should go to see a financial planner/estate attorney about this now.

The recipient does not pay taxes on gifts. The giver has to file a gift tax return if s/he gives over $11,000 to any 1 person during the year. No taxes are paid; the giver's eventual tax-free estate is reduced when the giver dies.

 

[kjranney]

Thanks abezon...

I appreciate your reply and I will push for an appointment with an estate attorney. I want to do this correctly.

Kent