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Can
You Give Away $12,000 Per Year?
As discussed in other Articles, people have
heard that the federal Gift Tax provisions that allows them to give
away $12,000 per year (per person) without paying any gift taxes. What
they do not know is that this refers to a Gift Tax exemption. They
wonder, "Can't I just give my assets away?"
The Gift Tax rules are from the Internal Revenue Service. Although a
gift of $12,000 to a person will not incur any gift tax implications,
it WILL INCUR the scrutiny of the Medicaid auditors if done within the
5-year lookback period.
The Internal Revenue Service is a separate division of the government
from Medicare and Medicaid. What may appear as sound advice for tax
planning may prove to be disastrous for Medicaid planning. It's
surprising how many professionals (financial planners, general
practitioner attorneys and accountants) do not understand this
concept! |
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James E. De Martino is licensed
to practice in the State of New Jersey.
We specialize in NJ Medicaid and Asset Protection legal services. |
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