When meeting with clients and prospective clients, we often get questions about the gift tax, gift tax exemptions, and how a gift of cash affects Medicaid eligibility. To properly understand how these items interact, each needs to be understood separately before taking them together.
Clients frequently want to know whether their home (or in some cases their parents’ home) is an “exempt” asset for Medicaid purposes. The answer is a resounding “Yes, but …”.
Elder law is a complicated area of legal practice, and thus clients sometimes confuse certain concepts that are similar, but distinct. An example of this is the difference between the five year look-back period and the period of ineligibility for Medicaid that is caused by transfers within the look-back period.
Clients and even certain professional often confuse MEDICARE and MEDICAID. The terms refer to types of benefits that are radically different.
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.
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.