QUESTION
Is there a limit to how much help I can give to a terminally ill family member on SS disability, medicare and food stamp?
Asked on Sep 22nd, 2012 on Taxation - Michigan
More details to this question:
My younger sister has terminal cancer at age 53. She is on food stamps, gets housing assistance and social security disability. We have a large family and would like to pool our resources to get her connected to the internet to watch movies, send and receive email. We were thinking Netflix, a roku, internet subscription. My husband says we should be careful because we could be liable if we give her things and she doesn't report them. This is not a million dollars - at most $150. She is still able to drive except after chemo. Curious about what a family can actually do for someone in this situation. We do not plan to "write it off on taxes".
2 ANSWERS
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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Gift to your sister such as internet connectivity, etc. should not have any affect on her disability payments; it's not earned income (such as she would receive if she were employed). There are stringent requirements on Social Security Disability with regard to income from work (i.e., gainful employment) but there is no prohibition against receiving gifts. The exemption from gift tax is $13,000 per year from an individual and each person can give gifts of this much without filing a gift tax return.
Answered on Sep 26th, 2012 at 12:53 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I do not believe your plans will have any impact on her ability to receive assistance. I would, to be conservative, not give the computer to her, or place the subscriptions in her name, simply provide the internet hook and access to her.
Answered on Sep 26th, 2012 at 12:12 AM