Does the State Take My Assets If I Go on Medicaid?

Long-term care costs are very high across the country, and they are particularly high in our home state of Connecticut. The average annual charge for a private room in a nursing home is well in excess of $100,000 in Connecticut at the present time. Medicare will not pay for long-term care, but Medicaid will assist with custodial care expenses. Because Medicaid is a program that is only available to people who can demonstrate financial need, people who retired with some resources are not going to qualify for coverage. There is an upper asset limit of $2000 for an individual in most states. However, we should point out the fact that many things that you own are not considered to be countable. Your home, up to $828,000 in equity in 2015, is not a countable asset for Medicaid purposes.You could also retain ownership of one vehicle, your wedding rings and heirloom jewelry, your household goods, and your personal effects. However, in spite of this, most of the elders who are residing in nur


Estate Tax Would Be Expanded Under Budget Proposal

High net worth families may be in a position to make things easier on succeeding generations, but there is an impediment. The federal estate tax is looming, and with its 40 percent rate, it can certainly be felt if you are exposed. You determine your level of exposure by comparing the value of your estate to the amount of the federal estate tax exclusion. At the end of 2010,  a legislative measure set the estate tax exclusion at $5 million for 2011, and it set the rate at 35 percent. The same rate was called for in 2012, but there was an inflation adjustment that brought the exclusion up to $5.12 million. At the end of 2012 you may recall the so-called fiscal cliff situation. It was resolved through a compromise that became known as the American Taxpayer Relief Act of 2012. Provisions contained within this measure retained the federal estate tax exclusion, but there have been ongoing adjustments to account for inflation. The act raised the top rate to 40 percent. During the current c

Free Report: Will My Heirs Be Forced To Pay an Inheritance Tax in Connecticut

An inheritance tax is a tax that would be levied on distributions to every inheritor who is not exempt from the tax. In other words, there could be multiple impositions of an inheritance tax when one estate is being distributed among the heirs. The states have the ability to impose state-level inheritance taxes, but most states are not exercising this option. Only six states in the union have state-level inheritance taxes, and fortunately, Connecticut is not among them. The states with state-level inheritance taxes are New Jersey, Pennsylvania, Maryland, Nebraska, Iowa, and Kentucky. Topics covered in this report include: Inheritance Taxes Estate Taxes Click here to read the whole article or download the PDF.

Is My Life Insurance Part of My Taxable Estate?

When you are planning your estate, you should create a statement of net worth to inventory your assets. This is simply a balance sheet. You enter your assets and liabilities, and you determine exactly what you have to give to your loved ones, and you gain an understanding of your debt. This is important for multiple different reasons. Estate tax exposure is one important thing to take into consideration when you are evaluating the extent of your assets. The federal estate tax can heavily impact your legacy, given the fact that it carries a 40 percent maximum rate. The estate tax is a factor for people who have been very successful from a financial standpoint, but most people do not pay the tax. There is a federal estate tax credit or exclusion. This is the amount that you could transfer to people other than your spouse tax-free. In 2015, the amount of this credit is $5.43 million. Life Insurance Proceeds If you have insurance policies on your life, and they are in your personal posses

Free Report: Is Probate Always Required in Connecticut Protection?

The probate court would not be involved in the transfer. This can sound like a turnkey arrangement, but you have to understand the fact that the person that you add to your title as a joint tenant would own half of the property immediately. As a result, the joint tenant would have to sign off on the sale if you wanted to liquidate the property. Plus, the property could be attached if the joint tenant was to run into legal or financial difficulties. Topics covered in this report include: Payable on Death Accounts Life Insurance Proceeds Property Held in Joint Tenancy Revocable Living Trusts Click here to read the whole article or download the PDF.