Tax issues - helping pay parent's medical bills?
Sorry to impose on the FIRE group, but I'm not sure where to start searching the web on this topic. Would appreciate some references.
We expect to help pay for my mother-in-law's medical expenses (what is not covered by medicare). We don't want the step-dad to have to dip into his fairly modest inheritance, because he'll need that money as he gets older.
We can gift them money, of course, but I what if the expenses might exceed the gift exclusion for a given year?
Are there rules for how you handle this so no gift tax comes into the picture? Do we have to pay the medical bills directly, or can we just give them money to cover expenses?
Just trying to gather the information so that we can handle this in the best way.
Any reference web sites, etc. would be much appreciated.
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!