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
In a scenario involving a married couple, statistics show it’s usually the husband that will enter the nursing home first, while the wife continues to reside in the community. However, on occasion both spouses will be in the nursing home at the same time. The monthly costs incurred as a result of two nursing home … Continued
In the majority of states an IRA is countable for both the institutionalized individual and community spouse. In order to protect the IRA from a Medicaid spend-down and qualify the institutionalized individual for Medicaid benefits, a tax-qualified Medicaid Compliant Annuity may be purchased. Two options exist to fund a tax-qualified Medicaid Compliant Annuity and … Continued
November 2014 Update: The oral argument has taken place. We anticipate a decision in Spring of 2015. Listen to the oral argument here. June 2014 Update: The appellant’s brief has been filed, along with two Amicus Curiae Briefs. Read more. February 5, 2014, Update: The litigators will be appealing the Zahner decision. I … Continued
In the recent matter of Hughes, et al. v. McCarthy, the U.S. Court of Appeals for the Sixth Circuit has reversed a judgment in an Ohio married couple case on the treatment of a Medicaid Compliant Annuity purchased by a community spouse. Since the case’s inception the Ohio Medicaid agency has been reorganized, which is why the case was formerly known as Hughes v. Colbert.