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
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