Skip to main content
Category

Government Benefits

What is a “Qualified Income Trust”?

By Asset Protection Planning, Government Benefits, Medicaid Planning

As of January 1, 2020, in Florida, in order to qualify for Medicaid benefits, the applicant’s gross income must be less than $2,349.00 per month. In general, if the Medicaid applicant’s monthly gross income exceeds this amount, the applicant will be denied Medicaid benefits. The only current exemption to this barrier is the establishment of a “Qualified Income Trust” (QIT). A QIT is an irrevocable trust that can be established to receive the Medicaid applicant’s excess income.  Once the trust is established, a checking account is opened in the name of the trust. Simply put, establishing a QIT allows the applicant’s income to be exempt from the “income cap” by flowing the applicant’s excess income through a special checking account each month.

The QIT is irrevocable and cannot be changed after it is signed. Only the applicant’s income can be deposited into the checking account and only certain payments may be made out of the account. After the Medicaid recipient dies, the balance of the QIT will be paid to the State of Florida up to the total amount of Medicaid payments made on the recipient’s behalf.

If you have specific questions regarding asset protection planning and 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.

 

 

May 25, 2020
Love0

My Dead Relative Received a Stimulus Check. How Do I Return It?

By Elder Law, Government Benefits, Probate, Tax Law

According to the IRS, stimulus payment made to someone who died before receiving it should be returned to the government. If the payment was made to a single filer, the entire payment should be returned. If the payment was made to joint filers, and one spouse had not died before the receipt of the payment, only the portion of the payment made on account of the decedent should be returned. This amount will be $1,200.00, unless the joint adjusted gross income exceeded $150,000.00.

If the payment was a paper check and you have not cashed it:

  1. Write “Void” in the endorsement section on the back of the check.
  2. Mail the voided Treasure check to the appropriate IRS location, based on your state of residence. This information can be found at https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more. If you live in Florida, the check should be mailed to:

         Austin Internal Revenue Service

3651 S. Interregional Hwy

Austin, TX 78741

  1. Do not staple, bend, or paperclip the check.
  2. Include a note stating the reason for returning the check.

If the payment was a direct deposit, or if the payment was a paper check and you have cashed it:

  1. Submit a personal check, money order, etc., payable to “U.S. Treasury,” immediately to the appropriate IRS location, based on your state of residence. This information can be found at https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more. If you live in Florida, the check should be mailed to:

         Austin Internal Revenue Service

3651 S. Interregional Hwy

Austin, TX 78741

  1. Write “2020EIP” and the deceased recipient’s social security number on the memo line of the check.
  2. Include a brief explanation of the reason for returning the payment.

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.

May 20, 2020
Love0

My Dead Relative Received a Stimulus Check. Can I keep it?

By Government Benefits, Probate

There have been a number of glitches in sending stimulus payments to Americans under the recently enacted CARES Act, including sending stimulus payments, which are intended to ease the financial stress caused by the Coronavirus, to dead people. Initially, this issue left many unanswered questions for the relatives of the deceased. What should I do with the money? Do I get to keep it? Should it be deposited into an estate account? Should I send it back? However, now, the IRS has issued specific guidance on what to do if you receive a stimulus check for a deceased person.

According to the recently released guidance, the IRS says that a stimulus payment made to someone who died before receiving  should be returned to the government. If the payment was made to a single filer, the entire payment should be returned. If the payment was made to joint filers, and one spouse had not died before the receipt of the payment, only the portion of the payment made on account of the decedent should be returned. This amount will be $1,200.00, unless the joint adjusted gross income exceeded $150,000.00.

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.

May 19, 2020
Love0

Will the Stimulus Check Impact My Medicaid Eligibility?

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

The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides for a direct payment of up to $1,200.00 to most taxpayers.  As the IRS begins to send out these payments, many Medicaid recipients are wondering how the stimulus checks will affect their Medicaid eligibility.

                The stimulus checks will be excluded as income and as an asset in the month of receipt and will continue to be excluded as an asset for 12 months following the date of receipt. This means that individuals receiving Medicaid benefits will be able to accept those payments without putting their benefits at risk.

Medicaid recipients are free to use the stimulus payments as they wish. Because the stimulus payment is excluded as an asset for 12 months from the date of receipt, it will not put the Medicaid recipient over the asset limit of $2,000.00. However, after the 12 months is over, any money remaining will be counted as an asset.

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.

May 12, 2020
Love0

(Updated 2018) What determines a disabled adult child, and what Social Security benefits can they receive?

By Government Benefits, Guardianship

A disabled adult child, or “DAC,” is an individual 18 years or older with a disability that began before they reached age 22. Such an individual is considered a disabled adult child because the Social Security benefits which they receive are based on the earning records of their parents.

When the parent of a disabled adult child retires, the DAC is entitled to receive 50% of the parent’s retirement benefit. For example, if the child is currently receiving income at the current Supplemental Security Income (SSI) rate of $750 and he/she is eligible for $790 from the parent’s retirement benefits, the child receives $790 – the child is entitled to accept the higher amount.

When a disabled adult child’s parent dies, the benefit is increased to 75% of the parent’s retirement benefit. If the surviving parent also dies, the DAC may contact the Social Security Administration to apply to switch over to the higher benefits.

March 25, 2019
Love0

Questions to ask before retirement

By Asset Protection Planning, Estate Planning, Government Benefits, Long-Term Care

For many seniors, retirement is a time of relaxation and having opportunities to explore their interests and the world. But before making the transition into retirement, there are some questions that you and your spouse should discuss.

 

  • What is the best time for my retirement? There are several factors you and your loved ones should consider before making the decision to retire. A large topic to discuss is how best to maximize your Social Security spousal benefits. You should also assess your family’s financial needs and consider the ways in which your retirement could impact your loved ones.
  • What lifestyle do I want to pursue? Everyone has a different vision for retirement. While some wish to travel the world, others plan to stay close to home. By having an idea of your lifestyle, you can properly prepare for your retirement.
  • How do I plan for long-term care? Planning for long-term care can be a long process. It is a good idea to meet with an elder law attorney to properly construct a plan. Planning ahead can save time and money and reduce unnecessary stress. Planning for long-term care involves setting up end-of-life documents, finding the right assisted living facility if necessary, and getting the best healthcare coverage for your needs.

 

If you wish to set up estate planning documents or plan for your retirement and end-of-life decision-making, please contact our office at (941) 906-1231 to speak with one of our attorneys.

 

April 25, 2017
Love0

What is a Pooled Trust?

By Asset Protection Planning, Government Benefits, Medicaid Planning

A first-party supplemental needs trust is created to allow disabled persons to receive the benefit of their funds in a trust while still qualifying for and receiving government benefits. An alternative to this trust is a pooled trust. A pooled trust is created by a non-profit organization, and individual beneficiaries can create accounts within the trust.

By pooling the assets of disabled persons, the organization can manage one master trust and maximize the benefits for the beneficiaries. The non-profit can make more stable investments and provide more services than a normal supplemental needs trust.

Most people with special needs join a pooled trust when they do not have anyone to create a first-party supplemental needs trust for them. And just like a first-party supplemental needs trust, a pooled trust is used for people to qualify for and remain eligible to receive government benefits, such as Medicaid and SSI.

A couple advantages of a pooled trust are the low costs and the fact that the funds will be used to help others with disabilities.

If you have further questions on this topic, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

April 14, 2017
Love0

Estate Planning for Same-Sex Couples in Florida

By Asset Protection Planning, Estate Planning, Government Benefits, Tax Law

 The U.S. Supreme Court rulings in the 2013 Windsor v. U.S. and the 2015 Obergefell v. Hodges cases resulted in changes for same-sex couples in areas such as estate planning and tax filing.

It is important that same-sex couples living in Florida take the proper steps in their estate planning, and specify key details that will ensure their protection under the law.  Such planning may include creating estate planning documents such as a last will and testament, or Revocable Trust, durable power of attorney, living will, and a designation of pre-need guardian.

April 7, 2017
Love0

What are the different levels of VA benefits?

By Government Benefits, Veterans Affairs

There are three different levels of VA pensions. Basic Pension/Improved Income applies to healthy veterans with lower incomes who are over the age of 65. Aid and Attendance is a program for veterans also over the age of 65 who require assistance with their daily living activities. Lastly, the housebound pension covers veterans with a disability rating of 100% that does not have to be related to their service in the military. To qualify, the disability must prevent them from leaving their home.

March 21, 2017
Love0

Aid and Attendance Pension vs. Medicaid Compensation

By Government Benefits, Medicaid Planning, Veterans Affairs

It is imperative that veterans  take time to choose which government program best suits their needs. According to Paying for Senior Care, these are the 2016 costs for both programs.

Program Medicaid VA Aid and Attendance
Other names Medi-Cal, Mass Health Homebound, Basic Improved Pension
Regulation State Level Federal Level
2016 Income Limits $2,199/month (for individual) $1,788/month (for individual)
Application Approval Time 2-3 month 6-12 months
Best Suited For Nursing Home Care Home Care or Assisted Living

 

March 17, 2017
Love0