Qualified Income Trusts (also known as Miller Trusts or a QIT) are necessary when the Medicaid applicant has more gross monthly income that the state’s income cap. This year (2024), the income cap in most states where this rule applies is $2,829 (three times the SSI monthly benefit of $943). This number changes on the […]
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Trusts, like everyone else, pay taxes when they earn income or sell capital assets for a profit. The tax liability, however, can be shifted to – or more properly retained by – the Grantor (the person creating the trust) if the Grantor retains certain powers identified in IRC Sections 671 – 679. Trusts are frequently […]
People often visit us and ask about using a trust to protect assets in the event they go to a nursing home. They are asking about trusts that don’t count toward Medicaid eligibility and protect their assets. Although the name at the top of the document is unimportant, these are frequently referred to as Medicaid […]
Last year we wrote about qualified longevity annuity contracts, sometimes referred to as QLACs. On July 19, 2024, the IRS issued final regulations covering how the contracts will be treated. The regulations are summarized as follows: In 2014, the Treasury Department and the IRS amended the regulations under section 401(a)(9) to provide special rules that […]
People regularly ask us whether they should use a trust to protect assets in case they go to a nursing home. The answer is, … maybe. If your crystal ball can predict the future, then we can answer that question with certainty (our crystal ball doesn’t work). Medicaid has rules that apply to any trust […]
We haven’t posted much lately because we’ve been busier than a one-armed paper-hanger, but we did want to let our friends know that Elizabeth Ann (“Elle”) is no longer with us. Elle was diagnosed with diabetes several months ago and we began giving her insulin after each meal. She had good days and bad days […]
The following video clips are from Berkshire Hathaway Annual Meetings where Warren Buffett fielded questions regarding estate planning: 2013 Annual Meeting: 2023 Annual Meeting:
On September 17, 2023, David L. McGuffey recorded a video for ezelderlaw.com regarding Financial Eligibility for Georgia Medicaid in 2023. Mr. McGuffey anticipates updating the video for 2024. If you’re interested in see the video, you can view it HERE.
When a married individual applies for Medicaid, the law protects the healthier spouse (known as the Community Spouse) if he or she has low income. The law also allows the Community Spouse to keep more resources than the $2,000 limit that applies to single applicants. The rules describing how the Community Spouse income allowance is […]
From time to time, I read “ruminations” published by David E. Hultstrom. Along with Anitha Rao, David is the co-founder of Financial Architects and is the smartest person who never successfully taught me how to use a financial calculator. In his July 1, 2023 post, David answered someone’s question about retirement this way: “You can […]
