Monetary, Gifting

[daughters3]

My mother is in a nursing home. She has never had any assets. Over the past year her Social security and VA benefits have accumulated in her checking account to about $5,000. Her bills are all paid, there just have been fewer of them this year. We were told a monetary gift can be given yearly to family members. Is this true of any money? Even federal- gov't money? Please let us know. Thank you.

 

[jharris352]

Any income, including federal income belongs to your Mother and may be dispersed as she, or her guardian pleases. Gifts up to $10k per year are tax free. The guardian should be very careful giving away Mom's money though. If it is later seen that Mother's assets were unfairly "gifted" away to the detriment of other possible heirs there will be a mess when she dies. $5,000 isn't that much money though, so maybe it won't be that bad.