For most people, receiving an inheritance is something good, but for a nursing home resident on Medicaid, an inheritance will ordinarily result in that person losing his or her Medicaid benefits due to receipt of “excess resources.” In Pennsylvania, non-exempt countable assets of a Medicaid applicant or recipient in excess of $8,000 ($2,400 for
By Stanley M. Vasiliadis, Esq., CELA Nursing homes in the Lehigh Valley cost $140,000 - $180,000 a year. Medicare and health insurance don’t pay for this. Fortunately, Medicaid does. But 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
Medicaid long-term care benefits are statutorily authorized only for nursing home care. But the law permits the federal government to grant “waivers” to states allowing them to expand Medicaid to include home and community-based services. Pennsylvania has such a program. The downside is that receiving care in a nursing home is an entitlement, while
New Tax Proposals May Effect Your Estate Plans A number of tax proposals being considered in Congress could significantly affect gifting and estate plans for those with larger estates -- over $3.5 million. If you're in that category, you might want to meet with your estate planner to take advantage of gifting opportunities that are
What Is A Fiduciary? When you need someone else to care for money or property on your behalf, that person (or organization) is called a fiduciary. A fiduciary is a person or entity entrusted with the power to act for someone else, and this power comes with the legal obligation to act for the benefit
Most people want to pass their assets to their children or grandchildren, but naming a minor as a beneficiary can have unintended consequences. It is important to make a plan that doesn’t involve leaving assets directly to a minor. There are two main problems with naming a minor as the beneficiary of your estate
While the current estate tax exemption is quite high, a closely held family business may put your estate over the limit. Careful planning is necessary to lower or completely avoid the tax, and minority valuation discounts are one strategy. Families that want to pass on their business may run into the estate tax. Estates
When a person declares bankruptcy, an individual retirement account (IRA) is one of the assets that is beyond the reach of creditors, but what about an IRA that has been inherited? Resolving a conflict between lower courts, the U.S. Supreme Court in 2014 unanimously ruled that funds held in an inherited IRA are not exempt from creditors
In order to be eligible for Medicaid benefits a nursing home resident in Pennsylvania may have no more than $8,000 or, for those whose gross monthly income exceeds $2,382 (in 2021), $2,400, in "countable" assets. Note that Medicaid is a state-run program, so the rules are somewhat different in each state, although there are federal
Passing assets to your grandchildren can be a great way to ensure their future is provided for, and a generation-skipping trust can help you accomplish this goal while reducing estate taxes and also providing for your children. A generation-skipping trust allows you to “skip” over the generation directly below you and pass your assets
