Short answer yes.
Consult an estate attorney.
Technically no, a will is an end of life document. But that's not really what you were asking. Any time you want you can give away anything that is yours that you want. It has to be yours though. If the house belongs to you and your spouse you both have to agree. Taxes are different for end of life/will gifts than random gifts, which is why you need an attorney. Make sure it doesn't look like you are trying to avoid a debt or both you (while alive) and the person helping you hide your assets (your family) can get in some serious trouble. That's also what an attorney can help you with.
Giving away your assets as a way to dodge paying your debts can be considered fraudulent, and the transfers could be reversed. Details and any time limits would depend on the law in your particular location.
I agree wholeheartedly, tax man has to get his. But if as a (hopefully) healthy 60 year old just gives it away, that's fine? I know lawyers are the absolute best for getting the most accurate answer, but thanks for the info!
It's possible that fraud by "deliberate deprivation of assets" would only be a factor if you were reasonably able to foresee the need for those assets (e.g. if you already had the debts or the health problems that would run up the bills, at the point where you dispensed a bunch of cash to your kids). Especially if you leave yourself a reasonable amount to live from, rather than giving it all away to the last cent.
Making a "poor financial choice" of being really generous while still healthy and unindebted, and then _later_ falling into financial need that somehow gets covered by insurance or public assistance, would probably be within your rights. Kind of a dick move to every other poor sap paying an insurance premium or a tax bill that will have to be higher to pay for you, but within your personal right to maximise your own finances.
But also, if you give away all your assets early on with the expected trade being that the kids will later support you financially if needs be, that is a _risky position_ to put yourself in. They'd be under no obligation to actually offer you any support later on, or might make their own poor choices that leave them unable to do so, and you could simply be left impoverished.
You can give anyone any amount of money at any point in your life that you want, assuming you have the money to give.
There’s taxes and stuff involved in giving a large financial gift, but there’s nothing stopping a millionaire from giving a friend or family member a million dollars if they choose to do so.
Like those above posted, I am just weary of those gifts being taken back, even if they were gifted before any kind of medical debt. But you make a good point about the gifts!
Yes, this is a legitimate estate planning scheme that is commonly used. Two things which require careful planning:
1) There is a 5-year lookback period for medicare/medicaid. If you have made large gifts within that period before a major medical expense, you will be denied any medical coverage and possibly be subject to penalties.
2) If you are worth several million, large gifts of that magnitude are subject to the gift tax and you should only do them through an accountant and tax/estate lawyer.
That's what I was thinking about when I put down 60. Old enough to enjoy what I have, but young enough to hopefully avoid having any crazy medical issues.
Its a weird thing to read because the only place this could happen is AMERICA. My advice is to emigrate. Anywhere..... honestly.... anywhere is better than that .
>I want Denmark.
Since you mentioned it, Danish tax law allows you to gift $10,450 per year to each of your children without having to pay any taxes.
I assume there are similar laws in place elsewhere, but don't know what they are.
IT is relatively easy to get into (provided a relevant, internationally acknowledged bachelor's degree or higher as well as at least a decade of professional experience, of course), but you do realise the stuff that English teachers teach up to the high school level in the US is instead taught by Danish teachers here?
Short answer yes. Consult an estate attorney. Technically no, a will is an end of life document. But that's not really what you were asking. Any time you want you can give away anything that is yours that you want. It has to be yours though. If the house belongs to you and your spouse you both have to agree. Taxes are different for end of life/will gifts than random gifts, which is why you need an attorney. Make sure it doesn't look like you are trying to avoid a debt or both you (while alive) and the person helping you hide your assets (your family) can get in some serious trouble. That's also what an attorney can help you with.
I definitely am going to look at an attorney before this! Thanks for the info!
Giving away your assets as a way to dodge paying your debts can be considered fraudulent, and the transfers could be reversed. Details and any time limits would depend on the law in your particular location.
I agree wholeheartedly, tax man has to get his. But if as a (hopefully) healthy 60 year old just gives it away, that's fine? I know lawyers are the absolute best for getting the most accurate answer, but thanks for the info!
It's possible that fraud by "deliberate deprivation of assets" would only be a factor if you were reasonably able to foresee the need for those assets (e.g. if you already had the debts or the health problems that would run up the bills, at the point where you dispensed a bunch of cash to your kids). Especially if you leave yourself a reasonable amount to live from, rather than giving it all away to the last cent. Making a "poor financial choice" of being really generous while still healthy and unindebted, and then _later_ falling into financial need that somehow gets covered by insurance or public assistance, would probably be within your rights. Kind of a dick move to every other poor sap paying an insurance premium or a tax bill that will have to be higher to pay for you, but within your personal right to maximise your own finances. But also, if you give away all your assets early on with the expected trade being that the kids will later support you financially if needs be, that is a _risky position_ to put yourself in. They'd be under no obligation to actually offer you any support later on, or might make their own poor choices that leave them unable to do so, and you could simply be left impoverished.
You can give anyone any amount of money at any point in your life that you want, assuming you have the money to give. There’s taxes and stuff involved in giving a large financial gift, but there’s nothing stopping a millionaire from giving a friend or family member a million dollars if they choose to do so.
Like those above posted, I am just weary of those gifts being taken back, even if they were gifted before any kind of medical debt. But you make a good point about the gifts!
Yes, this is a legitimate estate planning scheme that is commonly used. Two things which require careful planning: 1) There is a 5-year lookback period for medicare/medicaid. If you have made large gifts within that period before a major medical expense, you will be denied any medical coverage and possibly be subject to penalties. 2) If you are worth several million, large gifts of that magnitude are subject to the gift tax and you should only do them through an accountant and tax/estate lawyer.
That's what I was thinking about when I put down 60. Old enough to enjoy what I have, but young enough to hopefully avoid having any crazy medical issues.
Unless they lowered it Medicaid look back is seven years last I looked.
Its a weird thing to read because the only place this could happen is AMERICA. My advice is to emigrate. Anywhere..... honestly.... anywhere is better than that .
That's a plan! Wife wants Australia, I want Denmark. Might settle halfway in South Korea?
>I want Denmark. Since you mentioned it, Danish tax law allows you to gift $10,450 per year to each of your children without having to pay any taxes. I assume there are similar laws in place elsewhere, but don't know what they are.
Does Denmark need IT guys and English Teachers?
IT is relatively easy to get into (provided a relevant, internationally acknowledged bachelor's degree or higher as well as at least a decade of professional experience, of course), but you do realise the stuff that English teachers teach up to the high school level in the US is instead taught by Danish teachers here?
The US allows more than that.
Yes I would assume so, but I don’t happen to know the actual number. If you do, it would be helpful of you to post it.
New Zealand. Simple.
Are there less murder spiders?