2023 Medicaid Numbers
Last month in this blog I updated you on some of the new Social Security and Medicare numbers for 2023. The recently announced cost of living adjustment (COLA) of 8.7% has resulted in another big jump in benefits for the second year. Many other federal programs are tied to the Social Security COLA. These include Medicaid and the VA Aid and Attendance programs. This week we will review the 2023 Medicaid numbers. Medicaid's programs that cover long term care have a strict income cap or limit. For 2023 that number is $2742 per month. Anyone with more than $2742 per month of gross income (before taxes, Medicare and health premiums are deducted) must use a Qualified Income Trust in order to qualify for Medicaid. Medicaid recipients must also have less than $2000 of countable assets. A home is an exempt asset up to a certain limit as long as the applicant is living in it. In 2023 the limit is $1,033,000 of equity. Anything above that amount is countable. For a married couple where at least one of the spouses is living in the home there remains no limit. In other words,
Real Estate Sale After Death (Part 2)
In my blog post last week, I told you about a number of cases in our office in which we were contacted to help with a real estate closing that was delayed at the last minute. Shortly before the closing it was discovered that the person who signed the real estate contract didn’t actually have authority to complete the transaction because he or she didn’t own the property. The owner is deceased so only the executor of the will or - if there is no will - the appointed administrator has the authority to sell and then distribute the proceeds to the rightful heirs. So, why doesn’t this important fact come to light sooner? A general lack of knowledge about probate and the estate administration process is probably the reason. As I explained last week, most people are unaware of the Surrogate and what that office does. But asking questions at the beginning of the real estate sales process can avoid the scramble to hold a transaction together. For example, the realtor for the seller usually knows at the time he or she is hired that the owner has died. The realtor should immediately ask the client for a copy of the Surrogate papers. If the realtor gets a confused
Real Estate Sale After Death (Part 1)
Real Estate Sale After Death (Part 1) In recent months we have had a number of calls coming to our office with the following problem. The caller explains that he or she is attempting to sell a home owned by another family member. A buyer is found but then shortly before the closing the sale hits a snag. The buyer’s title company does a search and discovers that the deed shows the owner to be someone who has died. The company asks for Letters Testamentary (if the decedent had a will) or Letters of Administration (if there was no will) proving that the person selling the property has the authority to do so. If none was obtained, the title company will not insure the title. If the buyer is financing the purchase with a mortgage the bank won’t approve the loan without a title policy. Even in an all cash deal a buyer will not go ahead with the sale because the “seller” does not have authority to complete the transaction. So how does this happen? No one realized that when the owner died, a legal process was necessary to determine who has the authority to sell the property as well as to determine the person(s) entitled to the proceeds
2023 Social Security COLA
Every year the relevant numbers for the government programs we work with change. It starts with the Social Security Administration, which announces its cost of living adjustment (COLA). Other government programs then adjust their numbers, sometimes using the same COLA as Social Security. For many years the adjustment has been small and there have been some years in which there has been no change. Inflation, however, is now at heights we have not seen since the 1970’s and early 1980’s. That resulted in a 5.7% adjustment in 2022. In 2023 the COLA will be another big one, 8.7%. This means that Social Security recipients will receive the biggest jump in their monthly payment in years. Medicare numbers will also change next year. The standard Medicare Part B premium that most people pay will actually decrease a bit from $170.10 to $164.90. Certain Medicare copays will increase next year. The Part A hospitalization deductible will increase to $1600 and the copay for days 61 through 90 will be $400 per day. Medicare covers the cost of rehabilitation in a skilled nursing but there is a copay for that as well. The first 20 days are covered 100%. The next 80 days have a copay, which increases to $200 per day in 2023. Other government programs adjust
Fraud Prevention – Part 3
In this third post of three, I talk again about financial fraud, something it seems that has become more prevalent with each passing year. Last week I discussed some basic do’s and don’ts with respect to emails. But if my mom walks into her bank and wants to withdraws a large amount of money or says she needs to wire funds - even if it is overseas - should the bank honor that request? Can it refuse to allow her access to her own money? We typically have this conversation with family members after the fraud has occurred. It’s always easier to say what should have been done after the fact. Not so in real time. If my mother presents no signs that she lacks capacity what reason does the bank have for denying her request? Can they question the reason for the withdrawals from her account? In each instance or just for some withdrawals? How should that be determined? By age? By the reason given for the withdrawal? And if the bank denies the request what happens then? There are privacy rules and discrimination laws to consider and there could be many angry bank customers they were refused access to their own money. So, what can be done proactively? Restrictions can maybe be
Fraud Prevention – Part 2
In last week’s post I wrote about the increasing number of our senior clients falling victim to online financial scams. Once money has left your account the chances of recovering it are remote. So, the best defense is to prevent it from happening in the first place. As I stated last week, there are some simple things we all can do to avoid being the next victim. Some scammers make initial contact by phone and others by email. In either case, if you don’t recognize the caller or the email address, you should be on high alert. If a caller asks for personal information such as your birth date or Social Security don’t provide it. No legitimate business or government entity will ask for this information on the phone or in an email. Whatever story you are told to increase the urgency that you “must respond immediately” don’t believe it. There is never a good reason to act now before doing some investigation. In the case of emails, never click on links in an email from someone you don’t know or an email address you don’t recognize. Also be wary of an email from someone you do know but whose email address looks different than the one you know. It might have