I often have older clients come in and ask if they can give assets to their loved ones. These clients often are concerned about the Medicaid and tax ramifications of these potential gifts. If the clients are in relatively good health, it is perfectly acceptable to make large 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; however, there would be no tax associated with this gift according to the lifetime IRS estate and gift tax exemption.  For further advice on protecting your assets, 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.”