Another Word about QITs
I last wrote about qualified income trusts (QITs)last September but I want to revisit the topic because of 2 recent applications in our office in which the trustee failed to follow the very specific requirements that the State of New Jersey has imposed. It has often happened that people call our
Divorce and Medicaid – Part 2
Last week I wrote about the recent calls we’ve received regarding couples in unhappy marriages where one spouse now needs care. Even though they may have kept their finances separate for many years, under Medicaid rules the healthy spouse’s assets will be counted as well as the ill spouse’s assets when
2nd Stimulus Checks – Same as the 1st?
Last month Congress and President Trump finally agreed to additional stimulus checks to be sent to Americans in need during the current pandemic. This is the second such round of payments since the COVID crisis hit. There are some differences, however between this second payment and the first. The most important change is
Medicaid Applications – Like a Tax Audit on Steroids
While I am not an accountant and have never experienced an income tax audit, when describing the Medicaid application process I often reference it to a tax audit. It is an intrusive government review of an applicant’s finances over a 5 year time period. I have been filing Medicaid applications for
A Word about the PAS (Part 2)
Last week I wrote about the medical part of Medicaid eligibility. The preadmission screening (PAS) process requires the state to certify that the applicant needs nursing home level care. Nursing home level care means needing assistance with at least 3 of the activities of daily living. Those activities are transferring (eg. in and out
A Word about the PAS
When talking to clients about achieving Medicaid eligibility, we spend most of our time focused on the financial requirements. That includes an asset test and an income test and transfers that are potentially subject to a Medicaid penalty. However, I always tell families that we can’t forget about the medical test. If we
The Problem of Unexplained Deposits – Part 2
Last week I wrote about how unexplained deposits have the potential to be more damaging to a Medicaid application than unexplained withdrawals. That’s because deposits must be explained or the application is denied for being incomplete and those same deposits must be explained in any new application unless the deposit then falls outside
The Problem of Unexplained Deposits – Part 1
More and more of the Medicaid applications we handle these days involve issues surrounding assets received by way of the death of a family member. More often than not it will be a spouse who died, however, it may also be a parent or other relative. As part of Medicaid applications now,
Medicaid and VA Figures for 2021
The Social Security Administration recently announced its cost of living adjustment (COLA) for 2021. This adjustment is important not only because many seniors depend on Social Security benefits as their primary source of income. This adjustment is also applied to many of the other government programs that affect our clients’ lives. This year’s
VA Benefits and QITs – Part 2
In my post last week, I started to tell you about how tricky it can be when applying for Medicaid benefits while currently receiving VA Aid and Attendance benefits, a non service connected pension available to certain wartime veterans and their widowed spouses. While it is not taxable income for tax