Gifting condo to son

[Chief]

I would like your thougts on a married male age 84 giving the couple's condo to a son who is 60 yrs old. The condo was purchased when prices were high, about $40,000 of remodeling some capital improvments and some maintenance costs all of which add up to big loss if it were rental property. Rather it is a personal residence. Two concerns: what are the gift implications? What are the social security especialy Medicaid implications if either of the couple go into a nursing house under Medicaid? Is it better to pass ownership of the condo at point of death for both of the couple.

[S T]

On gifting and qualifying for Medicaid - or Medicaid Planning - I believe there is a 5 year look back rule ( 5 years)

You can search for Gifting Lookback period - Elder Planning and Gifting, etc.

Sandy

[Kram BergGold]

Gift basis

Remember, basis to son will be lesser of cost or FMV. In this case basis will be FMV whether gifted or inherited so this is a reason to gift.

[Burke]

Rather it is a personal residence. Two concerns: what are the gift implications? Is it better to pass ownership of the condo at point of death for both of the couple.

This is a question the couple needs to discuss with a elder-care lawyer. If an Enhanced Life Estate deed is honored in their state, that may be an option. It's too complicated an issue for a tax preparer to be hanging themselves out there with advice.