When Medicaid planning, it can be difficult to develop a clear-cut plan that works for your client’s specific situation. Fortunately, we provide multiple different strategies and solutions designed for unique cases, even those involving the spend-down of trouble assets, such as an IRA. One of these strategies involves the “Name on the Check Rule,” … Continued
“Name on the Check Rule” The “Name on the Check Rule” is a guideline used by Medicaid to determine who owns income. If a check is made payable to one individual, that same individual will be considered the sole owner of that income. When planning with Medicaid Compliant Annuities (MCAs), this guideline is used to … Continued
On January 3, 2017, Oklahoma Congressman Markwayne Mullin (Republican) – the same congressman who introduced a similar bill H.R. 1771 in 2015, introduced Bill H.R. 181 in an effort to change the way payments from Medicaid Compliant Immediate Annuities (“MCIA”) would be assessed for Medicaid eligibility purposes. Under the present law, payments from an … Continued
Krause Financial Services has recently learned of a ruling out of the U.S. Court of Appeals for the Sixth Circuit regarding the language used to designate the State as a remainder beneficiary when utilizing a Medicaid Compliant Annuity (“MCA”). While several states require the State Medicaid agency to be named as the beneficiary for the … Continued
July 31, 2017 UPDATE: We have learned that the Idaho Administrative Code (IAC) no longer has the Annuity Interest Test Language, meaning MCAs should no longer be an issue. The update anticipated below is now official. March 1, 2017 UPDATE: As of March 1, 2017, Krause Financial Services has confirmed the proposal to remove … Continued
Krause Financial Services has recently become aware of an income cap for institutionalized individuals in Oklahoma. Generally speaking, an institutionalized individual will not qualify for Medicaid benefits if his or her income is more than the private pay rate at the facility in which he or she resides. Certain states, however, implement a separate … Continued
Krause Financial Services has recently learned of a case out of Ohio involving Medicaid planning and the use of an annuity. In 2014, an institutionalized spouse was subjected to a divestment penalty period after his wife, the community spouse, purchased an annuity they believed to be Medicaid compliant. The couple decided to appeal the … Continued
In the past, Krause Financial Services and its New Jersey colleagues were faced with the lack of short-term Medicaid Compliant Annuities (“MCA”) being funded with tax-qualified/IRA funds. Previously, the shortest tax-qualified annuity term KFS was able to offer in New Jersey was 60 months. This posed a lot of concern with New Jersey attorneys … Continued
At the end of this past March, KFS Benefits Planner Stuart Otto had the pleasure of attending the Ohio Elder Law Institute in Columbus, OH. During his time there, Stuart learned of a pressing issue out of Cuyahoga County regarding the definition of “actuarially sound” for Medicaid Compliant Annuities (“MCA”). In addition to this … Continued
If you’re an Ohio practitioner, you’re probably aware that as of January 1, 2016, Ohio no longer permits a partial cure of transferred assets. Prior to January 1, 2016, when a portion of an improperly transferred asset was returned, the returned portion was considered an available resource beginning in the month the asset was … Continued