My 86 yr. old mother has her home for sale, but will need to move in with me fairly soon. Her home is currently in a trust with me as first trustee. If the home sells, can we use a portion of this money to pay off my $70,000 mortgage? I've been told that this exceeds the $12,000 yearly gift allowance and cannot be done. However, it would be OK for her to sell the house, go to Vegas and gamble the entire proceeds away. As I will be providing a home and 24 hr. care, is she allowed to pay me what she would have to spend in an institution?