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 The Law Firm of Evan H. Farr, 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 The Law Firm of Evan H. Farr, P.C. website.
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A Charitable Gift Annuity is a gift vehicle that falls in the category of Planned Giving. It involves a contract between a donor and a charity, whereby the donor transfers cash or property to the charity in exchange for a partial tax deduction and a lifetime stream of annual income from the charity.
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