An Uncertain Tax Environment, and Medicaid Laws, Make it Tough to Plan Charitable Giving in 2012

With 2013 almost upon us, now is the time to act for matters like planning for your estate and gifts to loved ones.  Depending upon your goals and hopes for the coming year, it might still be time to wait when it comes to charitable gift planning.

If you’re one of the tiny percentage of folks who have several million dollars sitting around that you don’t need, you may want to give big now because the charitable gift tax write-off currently set at $5 million is scheduled to drop to $1 million next year.  But for most of us, given ever-present threat of needing future nursing home care, it’s a good idea to hold off on gifting.

When it comes to charitable giving, we here at Farr Law Firm, P.C., urge those people who may need nursing home care in the next ten years to keep in mind that gift giving can be a risky venture.  When making charitable gifts, be mindful that any large gifts was made within the last five years will be penalized by Medicaid because Medicaid assumes that all gifts are intended to spend down assets to qualify for Medicaid.

For more information about gifting and Medicaid eligibility, read “Medicaid: The Perils of Gifting FAQ” on Farr Law Firm, P.C. website.

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About Evan H Farr, CELA, CAP

Evan H. Farr is a 4-time Best-Selling author in the field of Elder Law and Estate Planning. In addition to being one of approximately 500 Certified Elder Law Attorneys in the Country, Evan is one of approximately 100 members of the Council of Advanced Practitioners of the National Academy of Elder Law Attorneys and is a Charter Member of the Academy of Special Needs Planners.

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