What you can do is squirrel it away. If she needs it later, you can return it to her. If she doesn't need it, it would be a good way for her to hand down her assets while she is still here on earth. Many people with a good bit of money give gifts to their children each year. It is perfectly legal and the amount avoids gift taxes. If you think she might need it later, you can put it in a special account to save.
Wendy, it sounds like Mom is self-pay at Assisted Living, correct?
If within the next 5 years Mom can no longer afford Assisted Living and need to transfer to a skilled nursing home for her care and wants Medicaid [which is different from Medicare] to pay for her care, the $10k each would cause a penalty.
Thus, it's a tough question. Makes us wish we had a crystal ball to see how our elderly parents would be years down the line. If Mom can afford her way for many years to come, then it would be ok to accept her generous gift.
If within the next 5 years Mom can no longer afford Assisted Living and need to transfer to a skilled nursing home for her care and wants Medicaid [which is different from Medicare] to pay for her care, the $10k each would cause a penalty.
Thus, it's a tough question. Makes us wish we had a crystal ball to see how our elderly parents would be years down the line. If Mom can afford her way for many years to come, then it would be ok to accept her generous gift.