<prompt> Human: Instead of the possibility of getting sick and having hospitals, nursing homes or other medical costs eat away their nest egg, my parents are thinking of slowly transferring their savings each year as gifts to each of their children with the expectation that medicare, medicaid, social security and a pension will be able to pay for any expenses. They arent into traveling or making large purchases, but want to maximize the amount left to their children and grandchildren.With two of them, they should be able to each give 14,000 to each child 3 which would be 84,000 per year.Are there any negatives with this plan? Are there better alternatives?  <response>: Theyre well below the maximum lifetime gift tax exemption so they dont need to drag the payments out.Are there any negatives with this plan?Its extremely unlikely that transfer payments alone will cover medical expenses let alone living costs. 