Tag Archives: spouse

Is the Estate Tax Applied on Transfers to My Spouse?


There are many things to take into consideration when you are planning your estate, and there are those who make mistakes that yield negative consequences, because they do not know all the facts. This certainly comes into play when it comes to taxation, especially in the state of Connecticut. You pay taxes all of your life, on virtually everything: your property, your purchases, your income, your capital gains, hotel rooms, gasoline, etc., etc., etc. It would be logical to assume that you can pass away free of taxation, but in many instances, this is not the case. In this paper we will look at taxation as it applies to your surviving spouse. Federal Estate Tax and the Marital Deduction We have a federal estate tax that is applicable in all 50 states. This tax carries a 40 percent maximum rate, so it can take a heavy toll on the financial legacy that you are leaving behind to your family members. The existence of the tax is the bad news; the good news is that there is an unlimited mari
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Medicaid Planning: How Is My Spouse Impacted?

There is a great deal to take into consideration when you are planning ahead for your senior years. You may be under the assumption that Medicare will take care of all of your health care expenses, and you may also assume that Medicaid is not relevant to you. In fact, Medicare does not pay for everything in full. There are out-of-pocket expenses that you should be aware of when you are budgeting for your retirement years. These would include co-payments, deductibles, and monthly premiums. The out-of-pocket expenses are only part of the equation. Most senior citizens will eventually need help with their activities of daily living, and Medicare does not pay for long-term care. Medicaid does pay for living assistance, and this is why it is relevant to a significant percentage of senior citizens. Medicaid Planning It takes careful planning to qualify for Medicaid coverage, because it is a need-based program. Most people retire with some resources, and the income and asset limits are very
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What Is the Medicaid Community Spouse Resource Allowance?

Before we get into the Medicaid Community Spouse Resource Allowance, we should first explain why Medicaid can be relevant to retirees who were never financially needy. If you work throughout your life and pay FICA taxes, you earn retirement credits. You can gain up to four credits each year, and you will qualify for Medicare when you have at least 40 credits. The age of eligibility is 65 at the present time. You may assume that Medicare will pick up the tab if you ever need nursing home care. This may be a logical assumption, but in fact, Medicare does not pay for custodial care. Medicaid does pay for long-term care, and this is why it is relevant to many people who qualified for Medicare coverage. Medicaid Eligibility Because Medicaid is a need-based program, there is an upper asset limit of $2000 for an individual applicant. This is a very small number, but some things are not considered to be countable assets. Your home is not a countable asset, and this is a very big factor to tak
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