In CA, 91 yr old grandpa with Alzheimer's sold a car to a nonrelative caregiver for only $3000. Car's Kellyblue book value on the low end is $10,000. Can the difference be considered an excessive present gift to caregiver? Is it considered part of her income because of the difference in value? What are the rules in tax and undue influence with respect to present gifts. I've been able to find the rules and laws regarding leaving gifts to caregivers but not present gifts. Thank you in advance for any thoughts on the matter.
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Sometimes caregivers become close to the people they are providing care for and the gift is a true, well-deserved gift. It's true that sometimes there is undue influence, however. You'll have to decide if you want to pursue this legally and you should if you are convinced that this is a case of undue influence.
Good luck,
Carol
Is grandpa about to apply for Medicaid and you are worried about a transfer penalty on the car? And who gets held responsible for the transfer penalty?
Or is this about undue influence of a caregiver? Is the caregiver still working and doing for grandpa and are they paid a valid wage for services or is the car at a reduced rate part of a pattern of reimbursement by grandpa & his caregiver?
Or is it about family being slighted in that they didn't get the car?
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