March Newsletter
How Life Insurance Can Be Used to Fund a Special Needs Trust
By Caleb Harty Once the all-important question of “How much money should I plan to leave my child?” has been answered, the next step in special needs financial planning is to determine what assets will be used and when they will be passed on. Typically, special needs trusts (SNTs) are not funded until the parents'
Strict Timeline Governs Health Savings Accounts and Medicare
Beware of a six-month look-back period and tax penalties By Mary Beth Franklin Many clients have chosen to enroll in health savings accounts (HSAs) because they like the triple tax savings that HSAs offer when paired with a high-deductible health insurance plan. But things can get very complicated when clients approach Medicare-eligibility age. The rules
Things to Remember at Tax Time
Tax day, which is April 18th in 2017, is approaching and it is time to begin crossing T's and dotting I's in preparation for paying taxes. As tax time draws near, you want to make sure you file all the proper forms and take all deductions you're entitled to. Following are some things to keep
Medicaid…You Don’t Have to Wait Five Years – Or Go Broke
by Stanley M. Vasiliadis For nursing home residents, impoverishment is the price of admission into the Medicaid program. While most spend themselves broke, a savvy few manage to qualify for Medicaid without forfeiting their estate. One way to do that is with the “gift & annuity” strategy. Sadly, many nursing home residents actually do exhaust
Will Your Grandkids Ever See the College Money You Saved for Them?
by Stanley Vasiliadis Jim and Betty so adored their young grandchildren. Establishing a fund to financially assist in paying for their college education seemed like just the right thing to do. Of course, this is a common scenario. “Section 529” plans are perhaps the most popular vehicle to accomplish this goal. Under Section 529 of
How to Make Distributions to an SNT Beneficiary Without Disrupting Their SSI
When serving as the trustee of a special needs trust, it is crucial to be careful when making distributions for the benefit of the trust beneficiary. This is particularly true if the beneficiary receives Supplemental Security Income (SSI) because any distribution could potentially violate Social Security’s rules regarding unearned income for SSI recipients. If a
How to Deduct Long-Term Care Premiums From Your Income
Taxpayers with long-term care insurance policies can deduct some of their premiums from their income. Whether you can use the deduction requires comparing your medical expenses to your income in a complicated formula. Premiums for qualified long-term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses (including
Preventing a Will Contest
Emotions can run high at the death of a family member. If a family member is unhappy with the amount they received (or didn't receive) under a will, he or she may contest the will. Will contests can drag out for years, keeping all the heirs from getting what they are entitled to. It may