My niece needs double niece replacement. It is very expensive in excess of $60,000. We want to know how to set up a temporary medical fund for donations for her care.

You would have to set up a trust fund. Here is some previous advice from our board:

https://www.askmehelpdesk.com/philanthropy-charity/how-start-trust-fund-190097.html

This is also a legal question - I don't know exactly what you need by a "temporary" medical fund but I am assuming you are going to solicit and accept contributions to offset her medical expenses. If you are in the US you need to form a charitable organzation (501[c][3]) with the IRS. This requires bylaws and the organization must meet other IRS guidelines, including the filing of financial reports and tax returns.

There are companies which will set up and manage such an account for you IF it is funded with your own money.

(Do you mean knee surgery or something else?)

Knee replacement surgery for both legs. By temporary I mean it would just be to pay for medical expenses in oct and nov of 2010

If you want it to be tax deductable there has to be set up as a 501C corporation and there are strict rules as to how the funds can be used and how to dispose of any funds not used.

If you just want to set up a bank account and let people give you money that is not deductable that is different.

We open a Special Medical needs trust account for my nephew and donation or gifts has been less than 1500 - is this taxable and which form to use