Medicaid lawyers at Nirenstein, Horowitz & Associates can provide you with comprehensive help in understanding the rules for qualifying for Medicaid. You may need Medicaid to pay for your nursing home care and you cannot get Medicaid to cover you if you have too many financial resources and assets since Medicaid is a need-based program. [ ] The post Can I Give My Assets to My Kids to Qualify for Medicaid? appeared first on Nirenstein, Horowitz & Associates P.C..
The probate process is the process by which the majority of property transfers after a death, unless estate planning steps have been taken to facilitate the transfer in other ways. Assets that transfer through the probate process may be subject to estate tax if the estate is a large one. It can also take several [ ] The post List of Probate Assets appeared first on Nirenstein, Horowitz & Associates P.C..
Connecticut Medicaid eligibility is determined by many different factors. One of those factors, which often creates problems for seniors, is the amount of assets you have. Medicaid is supposed to provide medical care for the needy. In assessing whether or not someone is needy, the government does not just look at income- they also look [ ] The post Do Your Assets Affect Connecticut Medicaid Eligibility? appeared first on Nirenstein, Horowitz & Associates P.C..
There are certain estate tax efficiency strategies that are particularly viable when favorable circumstances exist. When it comes to transferring appreciable assets at a tax discount, the legal device called a grantor retained annuity trust can be quite useful when federal interest rates are low. Before we get into the details, we should provide some information about the estate tax parameters so that you can determine whether or not you are exposed to the federal death tax. Anything that you transfer to anyone other than your spouse is potentially subject to this tax. Transfers between spouses are not subject to transfer taxes, as long as the people in question are American citizens. When it comes to transfers to others, there is an estate tax exclusion. This is the amount that you can transfer to people other than your spouse free of taxation. Only the portion of your estate that exceeds this amount would be taxable. In 2015, this exclusion stands at $5.45 million. There is a gift t
If you never considered the possibility of the utilization of a living trust as an estate planning tool, you should take some time to understand the benefits. You do not have to be extraordinarily wealthy to benefit from the creation of this type of trust, and in fact, very wealthy people who are exposed to estate taxes would want to go in a different direction. When you establish a living trust, you are referred to as the grantor of the trust. Throughout your life, you can act as the trustee, so you would be in charge of the actions of the trust, and you can also serve as the beneficiary. You fund the trust with assets that you ultimately want to leave behind to your loved ones. Your heirs would be the successor beneficiaries, and you would also name a successor trustee to administer the trust after your passing (or in the event of your incapacitation). When you create the trust agreement, you can instruct the successor trustee regarding the way that you want the assets distributed a
You are probably aware of the fact that Medicaid is a government program that is in place to provide a source of health insurance for people who have very limited financial resources. If you are a working person, you may well have health insurance through your job, and you probably would not qualify for Medicaid due to the income and asset limits. Though Medicaid is not relevant to the majority of American workers, at some point, it can become quite relevant, even if you are qualified for Medicare coverage. This is because of the fact that Medicare does not pay for custodial care, which is the type of care you would receive in a nursing home or assisted living community. Seven out of every 10 seniors are going to need help with their activities of daily living, and nursing homes are very expensive. Here in the greater Hartford area where we practice law, a year in a nursing home can easily cost you over $100,000, and people often require multiple years of care. Medicaid Eligibility Re
To understand what a step-up in basis is all about, you have to have some background information about the capital gains tax. Assets that appreciate are subject to this tax when a gain is realized. You would realize a gain when you sell the asset in question. There are long-term capital gains, and short-term capital gains, and they are taxed at different rates, because the government would like to encourage long-term investing. Short-term gains, which are gains that are realized less than a year after the original acquisition, are taxed at your regular income tax rate. As you might imagine given the definition of short-term gains, long-term capital gains are gains that are realized more than a year after you originally purchased the assets. These gains are taxed at a lower rate. The exact rate is based on your taxable income. The highest income earners pay a 20 percent rate, but most people pay 15 percent. Step-Up in Basis When you absorb all the information above, a logical question
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