Last month’s article discussed the concept and utility of special needs trusts – a type of trust that is commonly used to benefit disabled persons who are receiving (or may in the future receive) mean-tested public benefits. Here we will review the different types of special needs trusts.
With the release of Notice 2020-79 the IRS has announced the cost-of-living adjustments for pension plans and other related items for the 2021 tax year.
How do I provide for the anticipated future needs of my disabled child without compromising their ability to qualify for government benefits? A special needs trust (sometimes also called a supplemental needs trust) can be a way to bridge that gap.
Nonpayment of a nursing home can be an issue, especially during a period of ineligibility created by gifting. The questions becomes “Who will pay the invoice for the nursing home during this period?”
It is common for parents to want to deed their home to their children for a variety of reasons. Specific to Pennsylvania is the desire to avoid probate, probate fees and inheritance tax (even though probate in Pennsylvania is a relatively simple process).
If an individual meets both the health and financial eligibility requirements, Medicaid pays the majority of costs for care services received at home or in a facility. Services provided in the home are under “Medicaid Waiver.”
A look-back period meant to prevent Medicaid applicants from giving away assets or receiving less than fair market value in order to meet Medicaid’s asset limit.
What is the best way to structure the transfer? Should a client transfer assets into the names of one or more of their children (or other family members)? While person-to-person transfers can work in certain situations, it is more often preferable to transfer assets to a trust that will ultimately benefit the intended family members.
A “combination” or “hybrid” life insurance policy incorporates a long-term care rider into a permanent life insurance policy.
Questions arise when people consider their long-term care needs in the event of a chronic medical condition, disability or disorder. Close to the top of the list is “How do I pay for the medical assistance I will need?” One solution is to purchase a long-term care insurance policy.
The SBA issued additional safe harbor guidance for PPP loans in FAQs #46 and #47 on May 13, 2020.
In addition to the complicated rules and requirements to achieve maximum loan forgiveness, there are a number of open issues the SBA and Treasury must address in order to get a better (and more complete) picture on how a PPP loan borrower can get the best use and results from the PPP loan funds.