If I receive money from my 91 year old father just to hold onto for his expenses, is it considered a gift still and subject to gift tax even though it is for his use?

[motoboy5207]

These funds would strictly be for my fathers expenses. Could possibly be over the maximum gift amounts.

[Anonymous_ · Accepted solution]

No, there has to be donative intent on the part of your father; the intent would be to irrevocably give you the funds to use in whichever manner you pleased.

However, it would be wise if the funds were not held in an account exclusively in your name and/or there was some sort of writing to document the nature of the transaction.

[Critter-3]

If this is some kind of Medicare/Medicaid  avoidance plan then seek legal advice from an Elder Law Attorney to see what your options are before you are both in hot water. 

[motoboy5207]

Ok thank you that's what I figured. My father has been spending like a madman since my mother passed in May and my brother and I are just trying to keep him from going through all of it. My brother is currently on an account with him but he still has been draining the account. Just trying to do whats best for him.

[Anonymous_]

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@motoboy5207 wrote:

Ok thank you that's what I figured. My father has been spending like a madman since my mother passed in May and my brother and I are just trying to keep him from going through all of it. My brother is currently on an account with him but he still has been draining the account. Just trying to do whats best for him.

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You should probably seek local legal counsel and explore a guardianship if things materially worsen.

I presume you (or your brother) already have a POA, but you need a mechanism to prevent him from doing further harm so please seek legal advice in your locale.