All: Thanks for the responses. This is indeed an allowed transfer of funds (not a gift) from a Florida resident to another (usually a relative) who will be providing care and related services to the person who transfers the funds -- in return for payment/disbursements from those funds that are used exclusively for the care recipient. I've been down this road now with two members of the family who have reached the point of needing this option to be considered. In the first case a few years ago, the loved one passed away before we could research all of the nuances -- including the federal tax implications -- and implement the agreement. Now, we are looking at this again with another relative. In both cases, I've been told to find a tax attorney or tax professional in Florida to work through these details with me. In the earlier case with the first relative, my outreach didn't produce any clear guidance that gave me comfort that the "pro" knew much more than I did. I think I just will have to go back to the elder care law firm I'm working with in Florida and insist they give me a reputable source for this information.
