You'll need to sign in or create an account to connect with an expert.
So the big problem is this: If a person gives away their property or money to make themselves "poor enough" to qualify for government help with assisted living, the government can, in some cases, go after or "claw back" those gifts.
So for example, a person needs to sell their home and go into assisted living. The house profits of $100,000 goes into their bank account. Their pension and social security are not enough to pay the assisted living expenses so they apply to Medicaid to cover the difference. Medicaid says you don't qualify unless you have $3000 or less in the bank. The person says, I'll be darned if I spend all my house profits on medical care, so I'll give away $97,000 to my family, then I will qualify for Medicaid. In some cases, Medicaid can take those gifts back from the recipients.
Trusts can be used to safeguard assets from Medicaid, but they have to be done properly.
To your original question, any gift from your mother is not taxable income.
However, it may be subject to confiscation (partial or total) depending on the circumstances. Your family needs the help of an attorney who works with elder law issues (if the home was in a trust, you may already have an attorney involved, who can easily explain your position to you.)
Good luck.
So the big problem is this: If a person gives away their property or money to make themselves "poor enough" to qualify for government help with assisted living, the government can, in some cases, go after or "claw back" those gifts.
So for example, a person needs to sell their home and go into assisted living. The house profits of $100,000 goes into their bank account. Their pension and social security are not enough to pay the assisted living expenses so they apply to Medicaid to cover the difference. Medicaid says you don't qualify unless you have $3000 or less in the bank. The person says, I'll be darned if I spend all my house profits on medical care, so I'll give away $97,000 to my family, then I will qualify for Medicaid. In some cases, Medicaid can take those gifts back from the recipients.
Trusts can be used to safeguard assets from Medicaid, but they have to be done properly.
To your original question, any gift from your mother is not taxable income.
However, it may be subject to confiscation (partial or total) depending on the circumstances. Your family needs the help of an attorney who works with elder law issues (if the home was in a trust, you may already have an attorney involved, who can easily explain your position to you.)
Good luck.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
MIKASHATOOKES
New Member
CraigIT
New Member
jaydriggz1437
New Member
Irasaco
Level 2
yss225
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.