Medicaid Asset Protection: Unterschied zwischen den Versionen

Version vom 21. Juli 2012, 14:48 Uhr

As tax preparation time begins, a lot of seniors are asking to include Medicaid asset protection as part of their tax planning methods. For those of you not familiar with the 2005 Tax Reduction Act, some of the provisions address specific transfers by seniors below the new Medicare nursing property provisions. Below the new provisions, just before a senior qualifies for Medicare assistance into a nursing house, they must spend-down their assets. These new restriction have a 5 year look-back, used to be three years. And employed to be that every spouse had a one-half interest in the marital property, it now appears that all the marital assets are to be spent-down. I have not noticed precise regulations but it appears that the healthful spouse will be left without having any assets if 1 of them gets sick.

Ideas by seniors have been to transfer their assets to their children. Although this selection is obtainable, Im not certain that its a very good choice. What if the youngster decides to use the asset for themselves, what if they get divorced and the judge awards assets originally intended for the parents to the divorcing wifes decree, what if the kid gets sued?

There are also tax implications. If the assets are transferred to the youngster for less than fair market worth, then its a taxable gift. Even worse, if this kind of transfer to the kid is completed just before the five years-appear back, -is it a fraudulent conveyance?

Medicaid asset protection has to be completed extremely carefully. Planning in this area is evolving. There are a lot of eldercare law firms popping up all more than the location. I have been approached by such a firm to send them clientele. They claim that they can structure a new deal whereby the nursing property wont be in a position to attach assets even immediately after they enter the nursing property.

I know this much, any technique utilized to deflect assets from the original owner has to be carried out at its fair market value. For example you just cant transfer your home from you to your youngster. There are tax consequences. Did you just sell your residence? Or did you just gift your home? Who will establish the fair market value? Did you get a genuine appraisal? If as a result, its at much less than fair industry value (prepared buyer and willing home health medicare billing seller, neither below compulsion to get or sell, each and every acting in their best interest) did you just generate a much more difficult difficulty?

Any method whereby theres an element of strings attached, its revocable and therefore you have done absolutely nothing to disassociate your self from your asset. One particular can challenge your intent, to divert assets for the purpose of defrauding a prospective creditor and failure to have filed a gift tax return has statutory penalties, and interest, worse- if Medicare intended, criminal?

I am aware of only one particular strategy of disassociating oneself from your asset (individual residence, your CDs, your investments, vacation spot) is to give it away. Period. You can gift it to your youngsters, pay the tax and thats it. The dilemma is that you no longer have any control and you are at the medical fraud mercy of your childs great intentions and a blessed spouse. Risky? You bet!

An irrevocable trust with an independent trustee (not associated to medicare charges for 2011 you by blood or marriage) will fit the bill.

An irrevocable trust, is an irrevocable contract among you and the independent trustee to manage the assets for the benefit of all beneficiaries. You and your spouse can turn into beneficiaries along with your youngsters and grand children.

Timing is really crucial. If the transfer (repositioning) of your beneficial assets is done before the five years, probabilities are excellent that it will stand-up in court. What if its before the five years are up? Is your Medicaid asset protection strategy nevertheless great? In my book its far better to have done some thing than absolutely nothing.