Keep in mind that when we are retired, there is no easy way to replenish the money in our accounts. We are not working or any work we do perform is often poorly paid. It is therefore a bad idea to gift our children or grandchildren with large sums of money. Even making a loan is chancy.
One thing that may not come to mind is that if you were to need to apply to Medicaid for assistance there may be consequences to giving money to family members. Many states will look at your monthly income, your resources and how you have spent your money for the last number of years. In New Jersey, the look back at spending patterns is five years. If you have given money away, it will delay your ability to receive assistance.
This will also apply to your house. You may sell it to a child or family member but do not just sign it over in an attempt to continue to live there.
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