What should a person diagnosed with a terminal illness consider before gifting assets?

When a person is diagnosed with a terminal illness, careful consideration of their financial situation becomes crucial, especially regarding gifting assets. The most pertinent factor in this scenario is whether they might need the money for medical expenses.

A terminal illness often comes with significant medical costs, and the person may face increasing or unexpected healthcare expenses as their condition progresses. Gifting assets can deplete available resources that could otherwise be used for necessary treatments, palliative care, or other medical needs that could arise. It is vital for them to ensure they maintain enough liquidity and funds to cover such expenses, as this can significantly impact their quality of life and care decisions during a challenging time.

While other factors like tax implications and financial burden might be relevant considerations in a broader context, the immediate concern in the face of a terminal diagnosis is often the potential need for available funds to address urgent medical costs. Thus, the importance of assessing whether the money might be needed for medical expenses makes the choice very relevant in this context.