Are you Gifting Annually? Read This!!!
Do you write your children an annual check? The US Government will allow you to write an annual check to anyone of your choosing of up to $13,000 per year without incurring a gift tax. This is called the Annual Gift Tax Exclusion, and it is a use-it-or-lose-it opportunity for each of us every year.
If you are gifting, please pay close attention. When you write a $13,000 check to someone, your gift is free of any gift tax, but it will cause you a Period of Ineligibility for long-term care benefits!
This doesn't mean you cannot gift the money - you certainly can, and without a gift tax. However, this transaction points out how confusing and complicated financial transactions can be, especially when you include Medi-Cal planning in the equation.
The good news is that you can gift without creating a Period of Ineligibility. To do so, you must know exactly the right methods and timing. If you are concerned about long-term care costs, you might consider adding a Medi-Cal planner to your team of advisors. They can help you avoid a mistake exactly like this one!
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About Us
Safe Inheritance Corp. specializes in helping seniors access State benefits for long-term care while protecting their assets.
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