Tax Question about gift to son
Hi Terry, I am a WGN listener. I enjoy you on the radio and also purchased purchase your book Social Security Horror Story. I hope you can give an answer on the current issue.
My 90 year old mother in-law move in with her daughter and I in November after her husband pass away. In February she sold her house. We put the money in a saving account in case she needs it for medical care. She offered her son a $100,000.00 which she told us after the fact and this was not the plan. Her memories is declining. Question is will she be taxed on giving her son this money and will effect her Social Security payment or Medicare in the future.
He is coming over this Saturday March 8th 2025 to get a check from her.
Please let me know.
Thanks!
Jay
Terry Says
Oops, I’ve been swamped — and I missed your deadline by a day.
I do not think she should give her son this money — but maybe it has already been done!
It likely will be needed for her care.
But to answer your question, it will not affect her SS or Medicare payments, since it is a sale of assets. She can exclude $250,000 of gains, so she should not report any capital gains, which would impact those benefits.
But maybe it’s time to get a healthcare and business power of attorney for her remaining assets!
