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Elder Law

Important changes in the SECURE Act

By Elder Law, Estate Planning, Government Benefits, Tax Law

Important changes in the SECURE Act include:

  • The required minimum distribution age (“RMD”) increased from 70.5 to 72 years old.
  • Removal of the age limit for IRA contributions.
  • The requirement that inherited retirement account distributions must be taken within ten years.
  • Penalty-free withdrawals for new parents.
  • Long-term employees working part-time can enroll in 401(k) plans.
August 3, 2022
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What is the SECURE Act, and how can it affect my retirement?

By Elder Law, Estate Planning, Government Benefits, Tax Law

The “SECURE” Act stands for ‘The Setting Every Community Up for Retirement Enhancement Act’ and was signed into law by former President Donald Trump on December 20, 2019.

The law changes many existing retirement rules to prevent elderly Americans from outliving their assets. This three-part series summarizes some of the changes in the law and describes how these changes affect Bradenton and Sarasota account holders of all ages.

August 1, 2022
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How to Get on the Florida Medicaid Waiver Wait List

By Asset Protection Planning, Elder Law, Government Benefits, Long-Term Care, Medicaid Planning

In Florida, the Medicaid program that helps pay for long-term care in an assisted living facility or at home is called the Long-Term Care Diversion Waiver. There is a waitlist for this program. In order to get on the waitlist, you will need to do the following:

  1. Call your local Area Agency on Aging and request a “screening for home and community-based services.” Each county in Florida is assigned to an Area Agency on Aging. Your local agency can be found here.

The representative will collect some preliminary information and will schedule a time for the phone screening with the individual requiring assistance, primary caregiver ,or closest family member.

  1. Complete the screening interview. The interview usually lasts about 30 to 40 minutes. The interview covers basic demographic information for the applicant, as well as information regarding the applicant’s income and assets. The interviewer will also ask about the applicant’s needs for care, including the applicant’s ability to perform Activities of Daily Living. It is important to be honest and provide the interviewer with all health and care issues no matter the extent of the issue.
  2. Following the interview, you should receive a prioritization decision. This letter indicates the applicant’s priority score, which determines their place on the waitlist. The higher the score, the higher the priority the applicant receives on the waitlist.
  3. At this point, you do not actually need to submit a Medicaid application, so you do not need to be technically asset or income qualified for Medicaid. However, it is important to have a plan in place to become income and asset qualified for Medicaid, so that you are ready to apply when the applicant receives a spot off the waitlist. If the applicants’ condition deteriorates while on the waitlist, you can request a re-assessment to move higher up on the waitlist.
  4. Once you receive notification that the applicant has received a spot off the waitlist, you will be provided with a deadline to submit the Medicaid application.

If you have specific questions regarding preserving your Medicaid eligibility, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

June 19, 2020
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What are the Activities of Daily Living?

By Asset Protection Planning, Elder Law, Health, Long-Term Care

The Activities of Daily Living are a series of basic activities performed by individuals on a daily basis which are necessary for independent living at home or in the community. There are multiple variations on the definition of the activities of daily living, but most organizations agree that there are 5 basic categories:

  1. Personal hygiene – bathing/showering, grooming, nail care and oral care
  2. Dressing – the ability to make appropriate clothing decisions and physically dress/undress oneself
  3. Eating – the ability to feed oneself, though not necessarily the capability to prepare food
  4. Maintaining continence – both the mental and physical capacity to use a restroom, including the ability to get on and off the toilet and cleaning oneself
  5. Transferring/Mobility – moving oneself from seated to standing, getting in and out of bed, and the ability to walk independently from one location to another.
June 18, 2020
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COVID-19: Tips for Caregivers of Individuals with Dementia

By Elder Law, Health

There is no evidence to suggest that dementia itself increases the risk for Coronavirus, just like dementia does not increase risk for flu. However, behaviors, increased age, and common health conditions that often accompany dementia may increase risk. For example, people with dementia may forget to wash their hands or take other recommended precautions to prevent the illness. Viruses like COVID-19 or the flu may worsen cognitive impairment due to dementia.

Caregivers of individuals living with dementia should follow guidelines from the Center for Disease Control (CDC) and consider the following tips:

  • Increased confusion is often the first symptom of any illness for people living with dementia. If your loved one shows rapidly increased confusion, you should contact their health care provider for advice. Unless your loved one is experiencing a medical emergency, such as difficulty breathing or a very high fever, it is recommended that you call their health care provider instead of going directly to an emergency room. Their doctor may be able to treat them without a visit to the hospital.
  • Individuals living with dementia may need extra reminders and support to remember important hygienic practices.
    • Consider placing signs in the bathroom and elsewhere to remind your loved one to wash their hands with soap for 20 seconds.
    • Demonstrate thorough handwashing.
    • Alcohol-based hand sanitizer with at least 60% alcohol can be a quick alternative to handwashing if your loved one cannot get to a sink to wash their hands easily.
  • Ask their pharmacist of doctor about filling prescriptions for a greater number of days to reduce trips to the pharmacy.
  • Think ahead and make alternative plans for care management if the primary caregiver should become sick.
June 15, 2020
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Tax Deadlines Postponed to July 15, 2020, due to Coronavirus

By Elder Law, Tax Law

In March 2020, in response to COVID-19, the IRS announced that taxpayers generally would have until July 15, 2020, to file and pay federal income taxes originally due on April 15, 2020. No late-filing penalty, late-payment penalty, or interest will be due.

On April 9, 2020, the Department of Treasury and the IRS expanded this relief to additional returns, tax payments, and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporation and other non-corporate tax filers qualify for the extension. This means that anyone, including Americans who live and work abroad, can wait until July 15 to file their 2019 federal income tax return and pay any tax due.

The extensions are automatic and apply to all taxpayers. Taxpayers do not need to file other forms or contact the IRS to qualify.

Fred Jacobs is a Florida Board Certified Tax Lawyer.  Contact Fred at Bach, Jacobs & Byrne, P.A. to discuss tax planning for you and your family. Call (941) 906-1231 to schedule an appointment.

June 10, 2020
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Beware of Coronavirus Related Scams in Florida

By Elder Law, Long-Term Care

The IRS is warning taxpayers to be on the lookout for scams related the Coronavirus, or COVID-19, which can lead to tax-related fraud and identity theft. The IRS and its Criminal Investigation Division have seen a new wave of phishing schemes against taxpayers.  Senior citizens are among the most vulnerable to these scams and should be especially careful during this time.

In its press release, the IRS reminded taxpayers that the IRS is never going to call you asking to verify or provide your financial information so you can get an economic impact payment or refund faster.  Taxpayers should watch out for emails, text messages, websites, and social media attempts that appear to be from the IRS and request money or personal information. If you receive an email that appears to be coming from the IRS, do not open it or click on attachments or links. You should go to the IRS official website, www.IRS.gov for the most up-to-date information.

The IRS also provides the following items to keep in mind, in order to protect yourself and your loved ones:

  • Scammers may emphasize the words “stimulus check” or “stimulus payment.” The official term is economic impact payment.
  • Scammers may ask the taxpayer to sign over the economic impact payment check to them.
  • Scammers may ask by phone, email, text, or social media for verification of personal and/or banking information, saying that the information is needed to receive or speed up their economic impact payment.
  • Scammers may suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
  • Scammers may mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

 

Taxpayers who receive unsolicited emails, text messages, or social media attempts to gather information that appear to be from the IRS should forward it to [email protected].

Fred Jacobs is a Florida Board Certified Tax Lawyer and Sean Byrne is an elder law litigator.  Contact Fred or Sean at Bach, Jacobs & Byrne, P.A. if you or a senior you know has been the target of elder exploitation or needs assistance with tax matters. Call (941) 906-1231 to schedule an appointment.

June 9, 2020
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Can a Florida Nursing Home or Assisted Living Facility Take My Stimulus Check?

By Elder Law, Government Benefits, Long-Term Care

The recently enacted federal Coronavirus Aid, Relief, and Economic Security (CARES) Act provided for a direct payment of up to $1,200.00 to most taxpayers, including many residing in nursing homes and assisted living facilities. Unfortunately, the Federal Trade Commission has received several reports of nursing home and assisted living facilities requiring their residents who are on Medicaid to sign over the stimulus funds to the facility. There have been reports of facilities claiming that because the resident is on Medicaid, the facility gets to keep their stimulus payment. This claim is not true.

According to the CARES Act, the stimulus payments are a tax credit. Under the Internal Revenue Code, tax credits do not affect eligibility for federal benefits programs, like Medicaid, and they are not counted as a resource that an individual must use to pay for those benefits.

Because most nursing homes and assisted living facilities are currently closed off to the public due to COVID-19, it can be more difficult to monitor your loved one’s finances. If you are managing a facility resident’s financial affairs (such as an agent under power of attorney) or your loved one lives in a nursing home or assisted living facility and you are not sure what happened to their stimulus payment, talk to the facility’s management.

If you find out that a Florida nursing home or assisted living facility has taken your loved one’s stimulus payment, you should report it to the Florida attorney general’s office immediately and file a complaint with the Federal Trade Commission.

If you have specific questions regarding your stimulus payment and preserving your Medicaid eligibility, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

June 8, 2020
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COVID-19: Tips for Supporting Loved Ones with Dementia Living in Nursing Homes During the Pandemic

By Elder Law, Health, Long-Term Care

There is no evidence to suggest that dementia itself increases the risk for Coronavirus, just like dementia does not increase risk for flu. However, behaviors, increased age, and common health conditions that often accompany dementia may increase risk. For example, people with dementia may forget to wash their hands or take other recommended precautions to prevent the illness. Viruses like COVID-19 or the flu may worsen cognitive impairment due to dementia.

 

The CDC has provided guidance on the prevention and control of COVID-19 in nursing homes. Precautions may vary based on local situations. If you have a loved one with dementia living in a nursing home:

 

  • Check with the facility regarding their procedures for managing COVID-19 risk. Make sure the facility has your emergency contact information and contact information for another family member or friend as backup.
  • Do not visit your loved one in the facility if you have been exposed to COVID-19, or have any signs or symptoms of illness.
  • Depending on the situation in your local area, facilities may limit or not allow visitors, in order to protect the residents.
  • If visitation is not allowed, ask the facility how you can have contact with your loved one. Options may include telephone calls, video chats, or emails to check in.
  • If your loved one is unable to engage in calls or video chats, ask the facility how you can keep in touch with staff in order to get updates.
June 3, 2020
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Opening the Qualified Income Trust Bank Account

By Asset Protection Planning, Elder Law, Medicaid Planning

Opening the Qualified Income Trust Bank Account

Once a Qualified Income Trust (QIT) has been prepared and signed, the Trustee must establish and maintain a separate bank account in the name of the QIT. The account can be established at any banking institution. Prior to going the bank to open the account, it is a good idea to call your bank and make an appointment. It helps to explain the situation before you arrive for the appointment, so that the bank representative will know what your purpose is and will be better equipped to help you.  When you call to make the appointment, explain that you, as Trustee of a Trust, will be setting up a checking account and making a deposit. Explain that it is not a trust account, but just a regular checking account that happens to be in the name of a trust.  Make sure that the bank can offer you a checking account that is non-interest bearing, and that you do not need to keep any minimum amount in the account at any given time.

The QIT account should be titled in the name of the Trust, for example, “Jane Doe Qualified Income Trust Dated __________, 2020” or “John Smith, Trustee of the Jane Doe Qualified Income Trust Dated ________, 2020.” A QIT is a “grantor trust”, which means that for tax reporting purposes, the trust’s finances are the same as the Settlor’s finances. Therefore, the bank should use the Social Security Number of the Settlor (the Medicaid recipient).

Make sure you bring the original Trust Agreement and your Driver’s License or other government issued photo identification with you to the bank to open the checking account. The bank can make a copy of the Trust, but you should not relinquish possession of the original Trust.

If you have specific questions regarding setting up a Qualified Income Trust account or your duties as the Trustee of a Qualified Income Trust, the experienced elder law attorneys of Bach, Jacobs & Byrne, P.A. are here to assist you. Call us at (941)906-1231 to set up a consultation.

May 26, 2020
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