In order to be eligible for Medicaid, individuals must meet certain financial and health criteria. As a part of the financial requirements, Medicaid applicants must be below a certain asset limit. Many may be tempted to gift away assets in order to fall below the limit but doing so may result in a penalty … Continued
Do you have clients that are planning for long-term care? If so, you’ve probably received countless inquiries about the terms and programs involved, which can be incredibly puzzling for many individuals. Medicare and Medicaid are two programs that are often confused for one another, and the two terms are consistently misused and misunderstood. In … 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
Many people may misinterpret the Gift Tax Exclusion and assume, incorrectly, that the amount they gift to a loved one will not have any effect on their Medicaid eligibility. As you are planning with your client, you will want to make it clear that even if they are within the Gift Tax Exclusion, that they … Continued
A number of attorneys have asked if they can be both an attorney as well as an insurance agent for their clients. In many ways, this would be a helpful asset because you can help your client plan for the future and can also sell them products that would be best for their situation. … Continued
Earlier this month, we shared the results of the Genworth 2017 Cost of Care survey, which revealed that nursing home costs have increased steadily over the last year. Between 2016 and 2017: The average cost of a private nursing home room increased by 5.5%. The average cost of a semi-private nursing home room rose 4.44%. … Continued
There has been no movement on H.R. 181 since we last wrote about this proposed law change. In fact, according to Government Track, H.R. 181 now has only a 1 percent chance of moving on from the Committee on Energy and Commerce where it’s currently being considered. As you may remember, on January 3, … Continued
7-31-2017 UPDATE Krause Financial Services has learned that the language in the Idaho Administrative Code (IAC) specific to the annual interest test has been removed, meaning Idaho Medicaid planners will now be able to fully utilize various Medicaid compliant annuity planning tactics. To learn more about what this means for Medicaid planning in Idaho, continue … 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
As of January 1, 2017, Michigan has implemented some changes to its treatment of annuities purchased with tax-qualified funds. According to the Bridges Eligibility Manual, Section 401, entitled, Trusts – MA, annuities purchased with tax-qualified funds, “do not have to be irrevocable or actuarially sound, and do not have to provide for equal monthly payments.” … Continued