This IRS rule has nothing to do with Medicaid’s asset transfer rules. While the $14,000 that you gave to your grandchild this year will be exempt from any gift tax, Medicaid will still count it as a transfer that could make you ineligible for nursing home benefits for a certain amount of time should you apply for them within the next five years.
Illinois is not a state with filial responsibility laws, however 28 states currently have filial responsibility laws. These laws usually make adult children responsible for their parents’ care if their parents can’t afford to take care of themselves, but some of the laws also make parents responsible for their childrens’ care. Where do your parents live?
Medicare has increased the amount of mental health coverage beneficiaries are entitled to. After years of unequal treatment, Medicare now covers mental health care the same way it covers physical illnesses.
Although their names are confusingly alike, Medicaid and Medicare are quite different programs. Both programs provide health coverage, but Medicare is an “entitlement” program, meaning that everyone who reaches age 65 and is entitled to receive Social Security benefits also receives Medicare.
Grandparents often are particularly generous to grandchildren as they see their family’s legacy continuing on to a new generation. In many cases, grandparents feel they have ample resources and their children or grandchildren may be struggling financially. Consider these six issues before writing those checks.
When a person declares bankruptcy, an individual retirement account (IRA) is one of the assets that is beyond the reach of creditors, but what about an IRA that has been inherited?
When you die, your debts do not expire with you. Most debt still needs to be paid off, if possible, although who is responsible for paying the debt depends on the type of debt, and some assets are protected from being used to satisfy a debt.
Many people, especially seniors, see joint ownership of investment and bank accounts as a cheap and easy way to avoid probate since joint property passes automatically to the joint owner at death. Consider these three potential drawbacks before signing on the dotted line.
Reverse mortgages can be a big help to seniors needing extra cash, but they can become a nightmare for their heirs. Heirs who don’t know their rights may be faced with large bills or threats of losing the house. Fortunately, there are some protections for heirs.
Here is an interesting point of view that most estate planning attorneys would agree with. We know it is easy to run to an office supply store or even grab forms from the internet that guide you on how to write your own will, but it really isn’t ever as “simple” as you imagine it to be. There are several issues that need to be thought of and addressed when preparing documents such as a will, powers of attorney, and a trust and you don’t want loop holes to cause trouble for the family that ends up in probate. The unexpected can be planned for and consider issues typically not thought of.