Father wants to gift me money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:wtf? That’s such a dumb idea. Either it’s a gift or it’s theirs, they are making this too complicated. I’d refuse the gift if there’s going to be these strings. Maybe you can set them up with a financial advisor who can help direct them how to best invest their money? There are lots of options for growth that are relatively stable.

No, I get it. If there’s trust and love, this isn’t an issue.

What’s the actual point though? “Here’s $50k. You can’t spend it bc I might need it later, but you take on all the tax implications and work.”
Ridiculous.

There’s no real tax implications or work for a savings account with $50k in it. I agree that op’s dad should work on formal estate planning, but I can understand that he sees this money that will eventually go to op, so no harm in getting it to him early, and it also could help facilitate cashflow down the road if there are issues in the future. In a family where everyone trusts each other, this isn’t a big deal.

There’s 0 benefit to giving someone else to keep your money in case you need it later unless you’re hiding assets. To scam the government. Despicable. Some people actually NEED those services.

And people want to blame immigrants for taking advantage of the system!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Smd the point is to hide assets from Medicaid?

Ohhh that makes more sense. They are just shady scammers.

You are unnecessarily nasty and awfully judgmental. Be nice, be kind. it doesn't cost you anything.

Scammers don’t deserve kindness.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:wtf? That’s such a dumb idea. Either it’s a gift or it’s theirs, they are making this too complicated. I’d refuse the gift if there’s going to be these strings. Maybe you can set them up with a financial advisor who can help direct them how to best invest their money? There are lots of options for growth that are relatively stable.

No, I get it. If there’s trust and love, this isn’t an issue.

What’s the actual point though? “Here’s $50k. You can’t spend it bc I might need it later, but you take on all the tax implications and work.”
Ridiculous.

There’s no real tax implications or work for a savings account with $50k in it. I agree that op’s dad should work on formal estate planning, but I can understand that he sees this money that will eventually go to op, so no harm in getting it to him early, and it also could help facilitate cashflow down the road if there are issues in the future. In a family where everyone trusts each other, this isn’t a big deal.

There’s 0 benefit to giving someone else to keep your money in case you need it later unless you’re hiding assets. To scam the government. Despicable. Some people actually NEED those services.

And people want to blame immigrants for taking advantage of the system!

I don't think OP's father is trying to scam anything. Look, he is in late 70s and probably beginning to realize his days are numbered. At the same time, he is probably concerned about running out of money and becoming dead weight to his daughter (OP). I can certainly understand what/why he is doing or trying to do. It is not that hard to understand if you try.

[Anonymous]

But from OP's post, it sounds like the father is worried about something happening to them so the account is really there in case money is needed quickly, not to help OP because they aren't supposed to touch it. I don't think this is scamming, just worry about assets being locked up in case something should happen, maybe?

Easiest would be to do a joint account, but I don't know about the implications of that for OP -- like if they have that account do they have to disclose that for financial aid or something?

But the reason why I said estate planning is that he is 78. Ideally the father should sit down with OP and discuss all their assets, accounts, life insurance, etc. plus share estate planning docs and discuss their wishes. They could set up a POA that could be springing as that would let their child help with ALL their finances/healthcare decisions not just this random account.

[Anonymous]

Your parents can gift you $19,000 per year ($38,000 for both mom and dad) without having to file any paperwork

The "paperwork" is no hassle at all !! Don't let that matter

[Anonymous]

Give. Not gift.

[Anonymous]

Do you all know you will have to pay taxes on anything over the $19,000 allowed to be gifted tax free? If you have a spouse, he can give you both double for a total of $38K.

If you go over those amounts, your dad will have to report it to the IRS and possibly someone will need to pay tax on it. It would be a waste of money if you were to gift the money back to him and have to pay tax a second time. I've never heard of someone keeping the money in case the parent needed it.

[Anonymous]

Anonymous wrote:Smd the point is to hide assets from Medicaid?

That's what it sounds like! Sounds like dad is getting ready for the five-year lookback.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:wtf? That’s such a dumb idea. Either it’s a gift or it’s theirs, they are making this too complicated. I’d refuse the gift if there’s going to be these strings. Maybe you can set them up with a financial advisor who can help direct them how to best invest their money? There are lots of options for growth that are relatively stable.

No, I get it. If there’s trust and love, this isn’t an issue.

What’s the actual point though? “Here’s $50k. You can’t spend it bc I might need it later, but you take on all the tax implications and work.”
Ridiculous.

There’s no real tax implications or work for a savings account with $50k in it. I agree that op’s dad should work on formal estate planning, but I can understand that he sees this money that will eventually go to op, so no harm in getting it to him early, and it also could help facilitate cashflow down the road if there are issues in the future. In a family where everyone trusts each other, this isn’t a big deal.

There’s 0 benefit to giving someone else to keep your money in case you need it later unless you’re hiding assets. To scam the government. Despicable. Some people actually NEED those services.

And people want to blame immigrants for taking advantage of the system!

+1

It's sus to give money and ask someone else to "hold" it for you. LOL!

[Anonymous]

Did he recently do something that may get them sued? Why are they trying to hide cash?

[Anonymous]

Anonymous wrote:But from OP's post, it sounds like the father is worried about something happening to them so the account is really there in case money is needed quickly, not to help OP because they aren't supposed to touch it. I don't think this is scamming, just worry about assets being locked up in case something should happen, maybe?

Easiest would be to do a joint account, but I don't know about the implications of that for OP -- like if they have that account do they have to disclose that for financial aid or something?

But the reason why I said estate planning is that he is 78. Ideally the father should sit down with OP and discuss all their assets, accounts, life insurance, etc. plus share estate planning docs and discuss their wishes. They could set up a POA that could be springing as that would let their child help with ALL their finances/healthcare decisions not just this random account.

If it’s a joint account and the father passes, the bank freezes the account. Happened to us when my dad died. That account was joint with my sister who lived with him and it was where all the automatic payments for household bills came from. It was an issue for us. Like I said upthread, in a trusting family, this isn’t a big deal and can be helpful moving forward.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:wtf? That’s such a dumb idea. Either it’s a gift or it’s theirs, they are making this too complicated. I’d refuse the gift if there’s going to be these strings. Maybe you can set them up with a financial advisor who can help direct them how to best invest their money? There are lots of options for growth that are relatively stable.

No, I get it. If there’s trust and love, this isn’t an issue.

What’s the actual point though? “Here’s $50k. You can’t spend it bc I might need it later, but you take on all the tax implications and work.”
Ridiculous.

There’s no real tax implications or work for a savings account with $50k in it. I agree that op’s dad should work on formal estate planning, but I can understand that he sees this money that will eventually go to op, so no harm in getting it to him early, and it also could help facilitate cashflow down the road if there are issues in the future. In a family where everyone trusts each other, this isn’t a big deal.

There’s 0 benefit to giving someone else to keep your money in case you need it later unless you’re hiding assets. To scam the government. Despicable. Some people actually NEED those services.

And people want to blame immigrants for taking advantage of the system!

+1

It's sus to give money and ask someone else to "hold" it for you. LOL!

Not when it’s your elderly parent. I hate to think what sort of families you people have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:But from OP's post, it sounds like the father is worried about something happening to them so the account is really there in case money is needed quickly, not to help OP because they aren't supposed to touch it. I don't think this is scamming, just worry about assets being locked up in case something should happen, maybe?

Easiest would be to do a joint account, but I don't know about the implications of that for OP -- like if they have that account do they have to disclose that for financial aid or something?

But the reason why I said estate planning is that he is 78. Ideally the father should sit down with OP and discuss all their assets, accounts, life insurance, etc. plus share estate planning docs and discuss their wishes. They could set up a POA that could be springing as that would let their child help with ALL their finances/healthcare decisions not just this random account.

If it’s a joint account and the father passes, the bank freezes the account. Happened to us when my dad died. That account was joint with my sister who lived with him and it was where all the automatic payments for household bills came from. It was an issue for us. Like I said upthread, in a trusting family, this isn’t a big deal and can be helpful moving forward.

This is not true. I had a joint account with my dad and had no issues accessing the money at any point after his passing. The joint owner is the automatic beneficiary of the account contents.

[Anonymous]

Anonymous wrote:If it’s a joint account and the father passes, the bank freezes the account. Happened to us when my dad died. That account was joint with my sister who lived with him and it was where all the automatic payments for household bills came from.

I had a joint account with my mother, and when she passed the money became mine. It was joint with right of survivorship. There are other kinds of joint accounts that work differently, and you don't want one of those.

[Anonymous]

Anonymous wrote:Do you all know you will have to pay taxes on anything over the $19,000 allowed to be gifted tax free? If you have a spouse, he can give you both double for a total of $38K.

If you go over those amounts, your dad will have to report it to the IRS and possibly someone will need to pay tax on it. It would be a waste of money if you were to gift the money back to him and have to pay tax a second time. I've never heard of someone keeping the money in case the parent needed it.

This is wrong. The excess over the yearly exclusion amount will be applied to your father's lifetime estate tax exclusion. If his estate is smaller than that very large amount, then the excess gift won't increase anybody's tax liability.