Gift money? i need help...?

umm... hypothetical question... If my dad was stuck in a nursing home and one day he decides to liquidate an investment account of his, sign the check and hand it over to me to do whatever i want with, what kind of issues would i have to worry about? (the check is about 35k) would there be any way that i could get around the whole gift money tax thing?

If he's doing it to try to qualify for medicare, he will need to do it at least 90 days before he applies, or else it will still be counted as part of his net worth.

There usually isn't a gift tax on a gift that size, but he would have to fill out a special form, and if there is gift tax then he would have to pay. The recipient doesn't have to pay or declare.

I will assume US law. YOU are NEVER taxed on gifts you receive. Your father would have to file a gift tax return. Unless the law has changed recently, there is a lifetime credit that would shield the first $1 million dollars of REPORTABLE gifts from actual gift taxes.

Alot will depend on what you do with it, but I would contact an financial advisor so you can plan accordingly to avoid as much tax issues as possible. I pu the IRS website below. Hope this helps

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