To Gift or not to Gift, that is the Question!

Older clients regularly pose the question of whether they should gift their house to their children. Under Medicaid laws, transferring ownership of a home, usually in the form of a gift, is subject to the look-back period and could result in disqualification. It is important for counsel to structure the gift of a residence without risking Medicaid eligibility.  Other considerations that must be taken into account when structuring the gift of a home include liability for applicable tax, and whether to set up the gift as an outright gift or transfer to a trust. Irrevocable income-only trusts can be used, offering potential tax advantages over simply changing the name on the title.

In addressing this dilemma, clients should consider:

  • In what situations should elder clients gift their house to their children outright versus setting up a trust?
  • What are the key tax issues to understand and consider when senior clients want to gift the residence?
  • What issues should counsel consider in order to maintain Medicaid eligibility for their clients?

If you have questions about these types of issues, please don’t hesitate to contact our experienced Elder Law attorneys at 702-798-4955. The proper guidance can make all the difference!

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