$10,000.00 gift

[imarose]

california:
mother had a stroke and we want to cash in her cd's, give them as $10,000.00 gifts to each of the children and put them in an account for her needs. will we have a problem doing this at the bank where the cd's are? we don't want her to lose her savings; she is 80 and in the hospital. i am on all of her accounts.

 

[ALawyer]

Apart from the potential problem of Medicaid fraud (if she needs a nursing home and you expect the staate will pay) if you are on the account you can cash in the CDs, take the early withdrawal penalty, make $10k per person gifts (assuming she would have).