[Graybeard58]

The children normally don't have an inheritance until the parents die. Any attempt to transfer beforehand is fraud

Depends on how long beforehand doesn't it?

I am 59 years old and have transferred money and property to my children. My intent is not to defraud and is therefore quite legal.

Intent is hard to prove anyway.

[GatorGirl]

In the context of Medicare, certain transfers can indeed be considered "fraudulent" and will be recaptured if found out. And they do look pretty closely believe it or not!!

I think this is what Publius is referring to.

Although, you'd be surprised with regard to intent! In the context of Medicaid "planning" and that is what it is indeed called, intent is practically irrelevant!


However, Graybeard is referring to a perfectly legal and acceptable way of transferring wealth to the next generation to avoid estate taxation, which is a very conservative concept, and this is by way of trust, gifts, and jointly titling certain assets.

Unless and until the estate tax is abolished, plenty of people will take advantage of these measures.

[ErnBatavia]

Depends on how long beforehand doesn't it? I am 59 years old and have transferred money and property to my children. My intent is not to defraud and is therefore quite legal.

I find myself in a position these past several months of having to do the fast track learning curve thing, due to my parents suddenly deteriorating (Pop's 91 and Mom's 84 next month).

Fortunately, they have sufficient assets to hold them quite awhile, but the current homecare provider rate in California runs right at $5000 a month for live-in; and that's after we did the buyout thing from the agency, which was costing $9000 a month. For reasons not worth going into here, keeping them in their own home is paramount.

Mrs. Batavia's mom died in 1991, and there was quite a bit of education picked up in that situation (altho she had virtually no assets)....the state of Minnesota could - and would - come back for several years to re-suck transferred assets...wifey was told by the lawyer it'd probably be a good thing to get her mum's wedding ring appraised, because it'd been given to her before the passing.

[goldstategop]

Yep, my kids spend the inheritance anyway. Why leave them penniless? It stupid since the government is going to get the money down the road. But no, the politicians have to go after Grandma and Grandpa's assets. Not a popular policy.

[cherry]

"I am 59 years old and have transferred money and property to my children. My intent is not to defraud and is therefore quite legal."

most of these inheritance rules apply to a certain amount of time before the Medicaid enrollee actually enrolls...

IOWS....what you are doing is exactly right....giving well before your elderly years when the chance of becoming very sick is greater....

besides....young people need the finacial help when they are in their 20's,30's and 40's, not when they themselves are through with child-raising and mortgages....

but there is that $10,000 limit per year for tax purposes...