| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 678.1 | | PACKED::COLLIS::JACKSON | DCU fees? NO!!! | Wed Feb 09 1994 14:42 | 16 |
| 10K gift to each and any person is tax-free. Money received
is always tax-free; the giver must pay taxes on gifts of more
than 10K to any single individual (if my memory is correct...)
Note that your mother is relinquishing any and all legal
rights to the money. (Moral rights are another thing;
but then if you're concerned about what is morally right,
you might not be choosing to take advantage of the health
care for peanuts when you can afford to pay for it.)
Your mother must pay taxes on any money she takes out of
an IRA. Of course, taking it out all in the same year may
put her in a higher tax bracket giving more money to the
government.
Collis
|
| 678.2 | Gifts to minors are not returnable | VSSCAD::SIGEL | | Thu Feb 10 1994 12:05 | 7 |
| Re .0
Also note that any gifts to a grandchild are just that: gifts. Any attempt to
give money to a minor and then have that minor "give" it back would be viewed
very dimly by just about any authority I can think of.
-- Andrew
|
| 678.3 | "gifts" and "give-backs" | CSC32::K_BOUCHARD | | Thu Feb 10 1994 15:19 | 11 |
| .2�Also note that any gifts to a grandchild are just that: gifts. Any attempt to
.2�give money to a minor and then have that minor "give" it back would be viewed
.2�very dimly by just about any authority I can think of.
Not always,
If I put lots of money into a UGMA for my child's education and that
child turns out to be a successful doctor,lawyer etc. there's no way on
earth that any "authority" is going to prove that the large sum of
money that child just "gave" to me is some sort of "giveback".
Ken
|
| 678.4 | Gov't sets itself up for this stuff | TLE::JBISHOP | | Thu Feb 10 1994 22:38 | 23 |
| re .3
Yes, if a adult child gives you money, there's no supposition
that it's a return of gifts you gave when the child was a minor.
The gotcha in .0's case is that the grandmother may want "her"
money back when the child is still a minor. That'd look _very_
much like the original gift wasn't a real gift. It's better
morally (and correct legally) to consider money given to a
minor as gone forever.
What's being proposed is legal (as far as I understand), even
if it's questionable on other grounds--it's "gaming" the rules,
and there are specialists who will help the elderly "game"
Medi<foo> and parents of college-age children "game" the
financial aid process. In both cases the earlier you start,
the more you can do.
Note that all the "gaming" in the world won't give .0's
grandmother a guarantee that the money will be returned--no
contracts, no paper trail or it's not a gift.
-John Bishop
|
| 678.5 | Minors can't give back while minors | VSSCAD::SIGEL | | Mon Feb 14 1994 12:43 | 27 |
| Re .3
>.2�Also note that any gifts to a grandchild are just that: gifts. Any attempt to
>.2�give money to a minor and then have that minor "give" it back would be viewed
>.2�very dimly by just about any authority I can think of.
>
>Not always,
>If I put lots of money into a UGMA for my child's education and that
>child turns out to be a successful doctor,lawyer etc. there's no way on
>earth that any "authority" is going to prove that the large sum of
>money that child just "gave" to me is some sort of "giveback".
But when your child has become the doctor, lawyer, or whatever, said child
is no longer a minor. While the child *is* a minor, the guardian for the
UGMA would be clearly violating trust to give the money back. (I could have
been clearer, but I did say "that minor", implying that the child was still
under age when the money was needed.)
.0 was clearly talking about a situation that was relatively immediate, and
for money that could be needed next year or twenty years in the future. For
that situation, "giving" money to a minor child means effectively locking up the
money until the child reaches majority age, at which time one must trust that
the child will give up all the money if needed by the grandparent. This strikes
me as extremely reckless. (If the grandchildren are of age, the dynamics
do change, but it's still quite risky.)
-- Andrew
|
| 678.6 | | USCTR1::SHERMAN | | Tue Feb 22 1994 15:28 | 8 |
| The only problem with "holding" your mothers money is that it becomes
your asset. If you get sued or file for divorce or have any other
legal problems, or die before your mother, it becomes part of your
estate and may not necessarily find its way back to your mother when
she needs it. You might try reading up on living trusts. I don't know
if that would get around the medicare issue or not.
|