Jump to content
ElmoHongZito

Can someone gift me money to spend on my mother w/o my mother losing public benefits?

Recommended Posts

Thanks in advance for your answers.

My grandfather passed around mid 2018. My aunt who he lived with and took care of him was the co-owner and beneficiary on all of his accounts so my understanding is that 100% of all his accounts default to her once he passed. There was no estate, trusts, or will ever set up. Supposedly he once wrote a hand written will but it was never notarized so it holds no legal value.

My mother is below poverty level and her only income is about $800 per month from social security.

My aunt wants to give my mother around 80k however that would cause my mom to lose certain public benefits she currently recieves like medicaid, premium free medicare part A & B, food stamps, and HUD subsidized housing.

In order to maintain my mothers benefits and not put her in a worse financial position than she is currently in, could my aunt simply wire the money to my account and then I could pay off my mothers car, any small debt she has, and moving forward when she needs something I can buy it for her online and have it shipped to her deducting it from that money?

My understanding is that if my aunt did this she would have to file a gift tax return since the amount exceeds 15k however it would not be subject to taxes unless she exceeds the lifetime exemption gift amount which is over 5 million.

Thoughts?

Share this post


Link to post
Share on other sites
28 minutes ago, ElmoHongZito said:

Supposedly he once wrote a hand written will but it was never notarized so it holds no legal value.

That is not correct.  Depending on the state where your grandfather resided, a will written completely in the handwriting of the decedent and signed by him or her may be a valid will.  It is called a holographic will.  As far as I know, no state requires a will to be notarized.

Share this post


Link to post
Share on other sites
8 minutes ago, adjusterjack said:

And nobody here is going to help you scam the government out of public benefits.

 

@adjusterjack I am glad you felt the need to post on here and make that type of accusation.

 

So if I decided to pay my moms car off tomorrow from my current bank account and buy her something off amazon every so often or a plane ticket to visit her grandchildren, am I scamming the government of public benefits?

Share this post


Link to post
Share on other sites
11 minutes ago, RetiredinVA said:

That is not correct.  Depending on the state where your grandfather resided, a will written completely in the handwriting of the decedent and signed by him or her may be a valid will.  It is called a holographic will.  As far as I know, no state requires a will to be notarized.

 

Wouldn’t that be irrelevant either way since my aunt was co-owner of all his accounts and this “handwritten will” is something no one has seen just something we heard her say?

 

Share this post


Link to post
Share on other sites

Do your research online about a third party special needs trust and then see if you can find an attorney or financial planner to whom you can ask questions to see if it will fit your needs.

Share this post


Link to post
Share on other sites
30 minutes ago, ElmoHongZito said:

Wouldn’t that be irrelevant either way since my aunt was co-owner of all his accounts and this “handwritten will” is something no one has seen just something we heard her say?

I have no idea.  I can only respond to facts you provide.  You said he had a hand written will.  But then you offered your own opinion about the validity of the will.   Now, you are stating the will is lost or that no one even knows if it exists.  Anyway, if everything he owns is in designated beneficiary form, then you are correct that the will is irrelevant.

Share this post


Link to post
Share on other sites
1 hour ago, ElmoHongZito said:

 

@adjusterjack I am glad you felt the need to post on here and make that type of accusation.

 

So if I decided to pay my moms car off tomorrow from my current bank account and buy her something off amazon every so often or a plane ticket to visit her grandchildren, am I scamming the government of public benefits?

 

If you are talking about a few bucks here and there and a couple hundred for a plane ticket probably not since public benefits allow the recipient a minimal amount of income and assets. But if you are talking about paying off a car loan balance of thousands of dollars the asset goes from having no equity to suddenly being worth several thousands or paying her rent and other major expenses. She would have to report that and deal with whatever effect it has on her benefits.

 

I suspect that you want to do this secretly without her reporting any change in income or assets and that would be fraud.

 

I suggest you google each of the benefit plans and see how changes in income and assets effect benefits. They may all have different thresholds.

 

The cleanest way is for your aunt to give your mother the $80,000. Your mother pays her own way for as long as the $80,000 lasts and she can requalify for public benefits when she is impoverished again.

Share this post


Link to post
Share on other sites
1 hour ago, adjusterjack said:

 

If you are talking about a few bucks here and there and a couple hundred for a plane ticket probably not since public benefits allow the recipient a minimal amount of income and assets.

 

Is me buying a plane ticket where she is the passenger or buying something on Amazon shipped to her address considered income or an asset for her??? Hard to understand how that would be the case. 

 

1 hour ago, adjusterjack said:

 

But if you are talking about paying off a car loan balance of thousands of dollars the asset goes from having no equity to suddenly being worth several thousands or paying her rent and other major expenses. She would have to report that and deal with whatever effect it has on her benefits.

 

The car is a corolla that I financed for her and I put down 5k of my money and it was before she had any public benefits. That’s right...even though you want to make me out as a fraud, I have looked out for my mother benefits or no benefits. Its my credit and my debt. I would think that I can pay off the approximately 7k remainder of the loan if I feel like it and it would not affect her assets just because she drives it and pays the $220 monthly payment on it. 

 

1 hour ago, adjusterjack said:

I suspect that you want to do this secretly without her reporting any change in income or assets and that would be fraud.

 

Yes its pretty obvious from your previous posts that you “suspect” the worst of me. If I am not sending her money, does she have a “change in income”? Aren’t only “qualified assets” reportable? Are there any “qualified assets” on Amazon?

 

1 hour ago, adjusterjack said:

The cleanest way is for your aunt to give your mother the $80,000. Your mother pays her own way for as long as the $80,000 lasts and she can requalify for public benefits when she is impoverished again.

 

This may be the case and maybe that is the route we end up going but I highly doubt that this will be suggested strategy of an elderly law attorney if we hired one. Hence why I posted the thread on this forum to see what that that strategy may look like based on the specifics I provided.

Share this post


Link to post
Share on other sites
16 hours ago, knort4 said:

Do your research online about a third party special needs trust and then see if you can find an attorney or financial planner to whom you can ask questions to see if it will fit your needs.

Isn’t a third-party special needs trust for people with physical or mental disabilities? 

What if my mother does not have physical or mental disabilities?

Share this post


Link to post
Share on other sites

You are the one asking about granting your mother assets while still collecting government benefits as though she didn't have those assets. Paying for a plane ticket once a year and sending her a sweater from Amazon are not even in the same league as inheriting $80K. If your aunt is truly the sole beneficiary and she wishes to gift $80K to you, nothing is stopping her. If you are using it to essentially finance your mother's lifestyle then it may count as fraud if she continues to represent that she has expenses she doe not actually bear or doesn't have assets you have bought her that she really does have. While buying the occasional gift is certainly permitted, it's going to take a whole lot of Amazon packages to get close to the $80K mark. Most government programs will allow her to have a vehicle without cutting benefits. That is not an unusual asset for folks to have. You will need to talk to a tax advisor to determine whether or not your "gift" of a car counts as income.

Share this post


Link to post
Share on other sites
14 hours ago, ElleMD said:

You are the one asking about granting your mother assets while still collecting government benefits as though she didn't have those assets. Paying for a plane ticket once a year and sending her a sweater from Amazon are not even in the same league as inheriting $80K. If your aunt is truly the sole beneficiary and she wishes to gift $80K to you, nothing is stopping her. If you are using it to essentially finance your mother's lifestyle then it may count as fraud if she continues to represent that she has expenses she doe not actually bear or doesn't have assets you have bought her that she really does have. While buying the occasional gift is certainly permitted, it's going to take a whole lot of Amazon packages to get close to the $80K mark. Most government programs will allow her to have a vehicle without cutting benefits. That is not an unusual asset for folks to have. You will need to talk to a tax advisor to determine whether or not your "gift" of a car counts as income.

Assets is a broad term. There are qualified and unqualified assets when considering eligibility. How long the 80k lasts and how many things are purchased over time is non-relevant. As far as the car, I am the co-buyer and I put 5k down on it when we purchased it back in 2016 before she was recieving any public benefits. I would think that as co-buyer I can pay it off any time I want without it affecting her elegibility. She is allowed a modest car. 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...