Can Medicaid Take My Home?

When you plan ahead for retirement, you probably think about the active, golden years. This period of time can be quite enjoyable if you take the right steps along the way. At the same time, you should also consider the twilight years that will follow. According to a government agency, a significant majority of senior citizens will eventually need help with their day-to-day needs. Medicare will not pay for long-term care, but Medicaid will cover these costs if you can qualify. In this post we will provide some facts about Medicaid planning and Medicaid recovery. Measured Divestitures Medicaid is a need-based program. There are income and asset limits that you must stay within if you want to qualify for coverage. You could give away assets to qualify for Medicaid. Many people essentially give their children inheritances in advance. It would be logical to take a wait-and-see approach. You could hold on to your assets and give them your children if and when you find out that you need lon


What is a Step-Up In Basis?

When you plan your estate, you may wonder about taxes that may be applicable. There is a federal estate tax, and it carries a $5.34 million exclusion in 2014. If the value of your estate does not exceed this amount, you do not have to worry about federal estate tax exposure. On the other hand, if you want to transfer more than $5.34 million, the estate tax looms large. The maximum rate of the federal estate tax is 40 percent. We practice law in the state of Connecticut. In our state there is a state-level estate tax. At the present time the exclusion is just $2 million. As a result,  you could be exempt from the federal estate tax, but exposed to the Connecticut state estate tax. Inheritance Tax An estate tax is levied on the entirety of the taxable portion of the estate in question. An inheritance tax is levied on transfers to each nonexempt inheritor. There is no federal inheritance tax, but there are a few states in the union that have state-level inheritance taxes. Fortunately, t