Whenever you give away assets, there are laws in three different areas to consider:
1) gift taxes; 2) Medicaid rules for nursing home costs; and 3) capital gains taxes.
Many people think you can give only $10,000 tax-free to each individual. Actually, the amount is now $13,000 a year. This is called the “annual exclusion” from the gift tax. This year you can give $13,000 to any number of persons without even reporting it to the IRS.
What most people don’t realize is that,