<Who gives $10K as a gift anyway?>

Parents and grandparents, looking to pass on their money before they need medicare to pay for nursing home care.

To qualify for nursing home funds, you have to be close to indigent. The theory is that you give your kids/grandkids your money, and they get an inheritance, which they wouldn't if you had to spend all your money on nursing home bills before you could qualify for medicare. The kids/grandkids are then in a position to help you with the items that medicare won't pay for - not luxuries, a number of things that actually contribute to your wellbeing (like dental care) are not covered in this situation.

If you or someone you know thinks this might be a useful strategy for you, *see a financial planner*. For one thing, the gov is allowed to challenge any gift given within the three years prior to entering a nursing home.

But, I know people who have used this strategy successfully. In one case, it has allowed them to make sure that their elderly parent with Alzheimer's is in a decent place, not a horror movie.