What is “Medicaid Planning” all about?
With costs of nursing home care skyrocketing, aging middle class couples who saved for their golden years find that their savings start to vanish when one spouse needs 24/7 care. The community spouse may have many years of good health ahead of her, but could face poverty and dependency if she does not plan things out for Medicaid to take over the cost of her beloved’s care. Careful...
If you stopped working due to illness, don’t delay iif you need Social Security Disability
If you are no longer able to work because you have developed a severe medical condition, there are important rules within the Social Security Disability program that you need to bear in mind. While you are working and Social Security taxes are being paid (FICA), you are acquiring work credits within the Social Security system. These are banked, and once you have acquired 40 calendar quarters...
When signing your Will, don’t forget about IRA beneficiary designations
When talking with your attorney about your new Will, be sure to find out if any of the assets is an IRA – an Individual Retirement Account — and be sure to check out your current beneficiary designations. Tax-deferred IRA accounts typically have beneficiaries designated by the account owner so that upon death of the IRA owner, the account will be transferred to one or more people...
Transferring the home? Consider ordering a Title Search
Deeds for real estate are recorded at the county clerk’s office to “put the world on notice” as to who owns the property. If you and your parents are talking about transferring the home, it would be a good idea to first order a title search through a Title Insurance Company to confirm the state of the title and the absence of liens.
Suppose that your great aunt owned a house...
Save your child’s medical & special education records
Do you have a son or daughter who is unable to work due to disabilities that began before age 22? Your young adult may have begun receiving SSI & Medicaid benefits when they turned 18. However, when you retire and are eligible to receive Social Security benefits, or if there comes a time that you can no longer work due to your own disabilities and you start receiving Social Security...
Ask your elder law attorney to review nursing home admissions agreements before you sign
When a person is moving into a nursing home for long-term care, there are many papers that are presented to them by the admissions office. While the resident has many federally-protected rights once they move in, at the time of entry the facility is asking them to sign a Contract which can be enforced in court. You should ask your elder law attorney to review the contract before you sign it,...
NJ Medicaid confirms that certain irrevocable immediate annuities are not resources.
When a person applies for Medicaid to pay for long-term care services, his resources must be less than a specific amount, which is generally $2,000 if the gross monthly income is less than $2,130, and $4,000 if the income is higher than that. “Resources” and “income” are treated differently. If the applicant owns an annuity contract, it may be counted as an excess...
NJ Medicaid confirms outright transfers to disabled kids cause no Medicaid penalty
Generally speaking, if a Medicaid applicant made gifts of assets during the 5-year look-back preceding her Medicaid application, eligibility will be denied for a period of time called a “transfer penalty.” There is a special exception to this rule for transfers that were made to disabled children.
In this case , M.C. v. Union County Div. Soc. Serv. And DMAHS, HMA- 8967-2013, the...
Multi-generational Living can be a lifesaver, but keep good records
Recent new reports show an uptick in the construction of “oversized” houses designed to accommodate three generations of a family. The aging or disabled parents may move in with their middle-aged child, and then the working child in their 20’s may move in as well to have a more affordable living arrangement. For the generation who are aging or have disabilities, who may need...
Affordable Care Act – Important Dates and Deadlines
By now you know that you can start shopping for affordable health insurance at www.healthcare.gov, where you will learn about the insurance policies available on the New Jersey exchange as well as whether you qualify for government subsidies to offset the cost of insurance, and if you qualify for the Medicaid expansion. Considering the catastrophic cost of even one uninsured trip to an...