Converting Traditional IRAs for Spousal Spend-Down
When a spouse enters a skilled nursing home—and may need Medicaid in the future—there are several well-known exempt assets. These include the couple's home, one automobile, burial reserves, and also any retirement accounts (including 401ks and IRAs) of the spouse not entering the nursing home. This exemption creates a very beneficial (and little-known) opportunity.
If the couple's assets are sufficiently high that the couple must spend-down assets prior to the institutiona
Planning After A Spouse Has Qualified For Medicaid
One of the biggest mistakes many couples make is assuming that once a spouse is qualified for Medicaid, their planning is complete. This attitude results in many missed opportunities. Because couples can protect significant assets when one spouse enters a nursing home, if proper planning takes place, generally the spouse at home still has considerable assets at his or her disposal after one spouse is qualified for Medicaid. However, it is at this point that the most important
Safely Transferring A Parent's Home To A Child Using the Caregiver Exception
Every day, millions of adult children finish the work day and go to their second job, taking care of a parent at home. These children ensure their parent has a good meal, is comfortable, and is safe. The vast majority of these child caregivers are not paid, and they do not expect to be. However, there is a valuable opportunity to shift family assets to the next generation as payment for services already being rendered for free. For parents who may someday require skilled nurs
Using Irrevocable Trusts To Protect Family Assets
For many families, real estate is the most important asset to pass on to children. Whether it is for sentimental value, present economic value, or the future potential for mineral rights resources, families often desire to preserve real estate for future generations. When long-term care is a possibility for parents in the future, irrevocable trusts can hold the key to preserving property and ensuring future value. While the “5-year look-back rule” should weigh heavy on every
Annuity Dangers
Under certain circumstances, annuities can be a great planning tool for financial advisers (and even estate planners, in some cases). However, for Medicaid applicants, they cause significant hurdles to resource eligibility, because they can be treated as available resources and sometimes as gifts. This often comes as a shock to persons applying for Medicaid who are otherwise eligible for benefits. Since 2006, there has been no area of elder law litigation more uncertain than
