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
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