Happy Holidays from Pruitt Law Offices! During the Holiday season, I often have clients come in and ask if they can make larger gifts of monies to their loved ones. These clients often are concerned about the potential Medicaid and tax ramifications of these gifts. If the clients are in relatively good health, it is perfectly acceptable to make larger gifts; however, if the client needs institutional care within five years of the gift, the recipient should be ready, if necessary, to return (cure) the gift.  If the gift is greater than $15,000 to a single individual in a year, the client should be prepared to file a gift tax return that year, although there will often be no tax payment associated with this gift according to the lifetime IRS estate and gift tax exemption.  For further questions on gifting, please contact Pruitt Law Offices at 262-633-8301, through our website at pruittlawoffices.com, or visit us at 731 Main Street in Racine. “We are your partners for professional service.”