Yes, But be careful. When making gifts to reduce assets for purposes of qualifying for VA Aid and Attendance Benefits you may accidently disqualify yourself from receiving Medicaid benefits later on. In addition gifts of assets almost always have unexpected and unintended tax consequences which must be carefully considered. In many cases the tax costs can exceed the VA Aid and Attendance Benefit the Veteran could expect to receive. In most gifting situations there are also tax consequences to the recipient of the gift in the form of capital gain and income taxes which can continue and reoccur for years to come. Before gifts are made check with your CPA or tax consultant. The Tax Consequences can be Severe. In addition the way a gift is made can cause the Veteran’s asset to become subject to the creditors, bankruptcy, potential ex-spouses, and lawsuits of the children once they have received the asset. If done properly these problems can be avoided.
Can I make gifts to reduce my assets and qualify for VA Aid and Attendance Benefits?
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