My father in NH is most likely going to pass this year and I have come to realize he hasn't paid taxes in years. He has also been sending his children large checks. Gift penalties kick in at $14k. Who gets penalized? will the government come after my siblings? He has no will so the money in his account will be taken... I am sure a check is coming to me and I think I will not cash it= I dont want to get in trouble!
If he is on Medicaid, they will come looking for the gifted money.
If he is paying out of pocket then the only issue you have is the over 14k gift tax (actually I believe in my state its 13k so make sure to check your state for the specific amount). The person responsible for paying the gift tax is the gifter (your dad).
Angel
You and your siblings will not be held responsible for those taxes.
Angel
However, since his income was directed toward nursing home costs, there's a possibility that his medical costs might offset any tax liability.
This is not something I would leave to chance and forego a gift check after his death. See a CPA now, and if there's liability, it's worth a consult with a tax law attorney; I believe the ones who can practice before the IRS are called enrolled agents.
I am afraid of the gov looking into who he gifted to and penalizing them..- my sibling is low income - will they find out she got unreported gifts from him?
yes, it is a messy situation which is why I am afraid of cashing future ck coming
My siblings being HUD etc I was worried they might be found out they have accepted money from him- I truly hope not, they need it badly.
Angel
ok good.
they are checks for $4,000- but for his four children, and maybe twice a year(?) But the gift tax thing is per person so that doesnt come close.
I looked up intestacy laws too, thank you.
ok i feel better-