Can a parent give a gift of cash to their children ...g

You don't have to pay tax for the gift , it's still within the range of the annual exclusion. This exclusion sets a range for each and every gift you give to different donees. The top gift worth, remained untaxed stands on 12,000$ .

The IRS allows up to $12,000 annually in tax free gifts to anyone at all.

This includes gifts from a parent to their children and grandchildren, and if both parents are alive, they can each gift up to the $12,000 for a total of $24,000 a year.

For details, you can reference this IRS web page on gifts.

http://www.irs.gov/publications/p950/ar02.html

If a Medicaid/Medicare asset check is of concern, then you should look at a irrevocable trust.

More on this can be found on the eHow website.

http://www.ehow.com/how_2068253_make-irrevocable-trust.html

"An irrevocable trust is an estate-planning tool that allows you to control your assets, provide for your heirs and sidestep some estate and income taxes."

You should read the above web page for the general process, and then an attorney if setting up an irrevocable trust is what you need.