Archives for Medicaid Planning

Non-Qualified Annuities

NON-QUALIFIED ANNUITIES Properly Naming the State of Indiana as a Beneficiary The State needs to be named as a beneficiary by the time of the Medicaid application in some situations.  You must name the State as primary beneficiary (unless a minor or disabled child exists) before the Medicaid application if we are taking any of the following steps with the non-qualified annuity: Additions of principal; Elective withdrawals; Requests to change the distribution of the annuity; Elections to annuitize the contract; A change in ownership; or Any other non-routine action. The State must be listed second if there is a minor
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Categories: Article, Elder Law, and Medicaid Planning.

Alert: Congress Passes New Law to Help Disabled Youth

Alert: Congress Passes New Law to Help Disabled Youth Congress passed, and on December 19, 2014, President Obama signed the Achieving a Better Life Experience Act into law (ABLE Act). This is an incredible step forward for folks who become disabled before age 26. This new law will be an important part of the estate planning for any family with a qualified disabled individual. What is an ABLE account? The ABLE account amends the IRS Code to exempt from taxation a qualified ABLE account set up by a state to pay “qualified disability expenses” for a qualified disabled person. The
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Categories: Article and Medicaid Planning.

Indiana Special Income Level Increases

IMPORTANT NOTICE Indiana Special Income Level Increases January 1, 2015 Indiana now has an income cap for Hoosiers needing Medicaid assistance in nursing homes and for waiver services. A person’s income in excess of the special income level must be deposited into a qualified income trust each month. The special income level was $2,163 in 2014. This increases to $2,199 on January 1, 2015. Recipients with a qualified income trust (Miller Trust) will need to put their income in excess of $2,199 into a qualified income trust each month starting January 1, 2015.              
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Categories: Article and Medicaid Planning.

Important –Medicaid Rule Changes

Important –Medicaid Rule Changes The Indiana Family and Social Services Administration made major changes in the Indiana Medicaid Program. The Indiana Medicaid rule changes which went into effect on June 1, 2014, include: Indiana will now defer to disability determinations made by the Social Security Administration. Folks on SSI will automatically be enrolled in Medicaid. The “spend down” provisions will be eliminated for most folks receiving Medicaid benefits in the community. The asset limit will increase from $1,500 to $2,000 for a single person and from $2,250 to $3,000 for a married couple. The “spend down” system will be replaced
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Categories: Article and Medicaid Planning.

IRA’s Get Better in Indiana

IRA’s Get Better in Indiana Recent Medicaid rule changes have made IRA investments even more valuable for Hoosiers. As of June 1, 2014, IRA accounts (including 403b, Keogh accounts, and other tax-deferred accounts funded with pre-tax dollars) no longer count as assets if your spouse has to enter a nursing home! While no one wants to go to a nursing home, there are times when nursing home care is needed. With the cost of nursing home care at $6,000 a month on average in Indiana, few Hoosiers can afford to pay for their care for very long. Medicaid pays for
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Categories: Article, Elder Law, IRA, and Medicaid Planning.

Medicaid Planning with the Family Farm or Cottage

Medicaid Planning with the Family Farm or Cottage In the not too distant past, the largest obstacle to passing property to the next generation was estate and inheritance taxes, now those taxes are nearly non-existent. Last year, effective January 1, 2013, the Indiana inheritance tax expired, and for tax year 2014, a decedent can have up to $5.34 million before the estate tax is imposed. So, unless a married couple has in excess of $10.68 million, it is unlikely a penny of estate or inheritance tax will be paid. So, what is the largest obstacle to passing property to the
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Categories: Article, Elder Law, and Medicaid Planning.