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
We have an important Maine Name on the Check rule update! We are pleased to announce that Maine is the most recent state to honor the “Name on the Check” rule! We have received word that the “Name on the Check” rule has been successfully litigated in Maine. Because of this victory, the “Name on the Check” rule now appears to … 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
For those of you not familiar with the term “Name on the Check” rule, it is a common guideline used by Medicaid in determining who owns income. If a check is made payable to a particular individual, that individual is considered the owner of the income. This guideline can be quite advantageous in cases involving … Continued
Have you heard about Texas’ take on tax-deferred annuities in Medicaid Planning? In November, we published a blog, highlighting a recent change in the Texas Medicaid Agency’s interpretation of the word annuity, and detailed how – pursuant to the Texas Medicaid Handbook – your clients’ retirement assets may be transferred to a tax-deferred annuity (TDA), while still … Continued
Spousal Medicaid Annuities No Longer Have Beneficiary Requirements Arkansas is the second state* to jump on board with the Hughes v. McCarthy U.S. 6th Circuit Court of Appeals decision, ruling that an annuity purchased for the sole benefit of the community spouse (CS) does not need to follow the beneficiary requirements. As you might recall, … Continued
You might recall a letter the National Association of State Medicaid Directors (“NASMD”) wrote to the Centers for Medicare & Medicaid Services (“CMS”) back in March of 2010. The letter was regarding the use of short-term annuities in spousal planning, particularly on the technique where community spouses were using the annuities to return the … Continued
Using a partial cure is a planning technique only viable in an increasingly limited number of states. Commonly referred to as a reverse half-a-loaf plan, the partial cure technique usually consists of the following steps, in a nutshell: Applicant gifts entire net worth Applicant applies for Medicaid Medicaid assigns penalty period in light … Continued
For years practitioners throughout the nation watched in envy as Michigan couples transferred their entire spend-down amount into a special needs trust solely for the benefit of a community spouse and immediately qualified for Medicaid. The assets held in these “Solely for the Benefit Of” trusts, hereafter referred to as SBO trusts, were not … Continued
The “name on the check” rule is the common guideline used by Medicaid in determining who owns income. If a check is made payable to a particular individual, that individual is considered the owner of the income. This guideline is most advantageous in cases involving married couples, where the institutionalized spouse owns an IRA. … Continued