Follow this link to read the 2015 Declaration of Preneed Guardian for Minor Child: Declaration-of-Preneed-Guardian-for-Minor-Child
Qualified income trusts (QITs) can be used to help a person qualify for Medicaid whose gross income before any deductions is above the limit to qualify for Medicaid long-term care services. The current income limit for Medicaid long-term care services (in 2015) is $2,199 per month. This type of trust agreement must be irrevocable and must be approved by the Department of Children and Families’ legal office. Deposits must be made into your QIT each month you wish to qualify for Medicaid. After the account holder’s death, the funds remaining in the QIT will be used to pay back Medicaid up to the amount received and used for long term care.
If you have questions about qualifying for Medicaid to help pay for long term care, contact our Florida Board Certified Elder Law Attorney Babette Bach, Esq. at (941) 906-1231.
Babette Bach Esq. will be a speaker at the Florida Health Care Assoc. District VI meeting.
Ms. Bach’s presentation will be on the “Unlicensed Practice of Law & Medicaid Planning”
LOCATION: Tidewell Hospice Building, 5955 Rand Boulevard, Sarasota FL. 34240.
DATE: Thursday, January 22nd, 2015.
TIME: 12pm.
For the recent Supreme Court ruling on Medicaid planning by non-lawyers (January 15, 2015),
please click this link: http://www.floridasupremecourt.org/decisions/2015/sc14-211.pdf
The Social Security Administration (SSA) announced the COLA for seniors, placing the increase at 1.7% for 2015. There’s not going to be any change in the Part B premium of $104.90 (for those unmarried seniors with incomes below $85,000). The SSI monthly benefit is $733. The Presumed Maximum Value is $264.33. The 2015 Florida Medicaid Income Cap is $2199. Attorney Babette B. Bach is a Board Certified Florida Elder Law attorney and an expert in public benefits. Call Bach & Jacobs, PA to schedule an appointment with Babette to review your eligibility for Medicaid and other public benefits.
Do you employ private-duty caregivers in your home? On January 1, 2015, a new Final Rule issued by the United States Department of Labor will take effect concerning domestic service workers under the Fair Labor Standards Act (FLSA) and will extend minimum wage and overtime protection to such workers. Domestic employers are very vulnerable to employment-related mistakes and oversights that could carry significant financial and legal risks. The attorneys at Bach & Jacobs, P.A. work with clients to make them aware of payroll, tax, and labor law requirements, including insurance requirements, when they hire home help. Contact our office today to make an appointment with one of our elder law attorneys if you are employing or are considering employing private duty home health assistance.
Question: Why would someone convey property using a lady bird deed?
Answer: There are multiple advantages of using a Lady Bird deed. First, the transfer of the real property occurs pursuant to the remainder provision in the deed and will not require probate to effectuate the transfer. Second, the owner/life tenant can maintain the homestead tax exemption. Third, it gives the owner/life tenant greater control than with a typical life-estate deed. The remainderman can be changed and a future conveyance or mortgage would not require the remainderman’s cooperation or approval. Fourth, there are various tax advantages. The remainderman receives the property at the life tenant’s death with a ‘stepped up basis’ for federal income tax purposes. The Florida Department of Revenue does not levy documentary stamp taxes against Lady Bird deed transfers. Finally, a Lady Bird deed can be useful in planning for Medicaid eligibility for an unmarried applicant because the creation of the deed is not considered to be a transfer of assets by the state. Contact Board Certified Elder Lawyer Babette B. Bach, Esq. to find out if a Lady Bird deed would be appropriate for transferring interests in real property you own.
Question: What is a ‘Lady Bird Deed’?
Answer: A Lady Bird deed, or “enhanced life estate deed,” is a method for transferring an interest in real estate. With a Lady Bird deed, the owner of a property reserves a life estate in the property, entitling the grantor the right to live on the real property for the rest of his or her life. The deed also identifies a ‘remainderman’, who, at the grantor’s death, receives title to the real property. What makes Lady Bird deeds unique is that the grantor/owner/life tenant also reserves the right to encumber the property, keep all income from the property, and sell the property without the approval of the remainderman. In short, the remainderman only get what’s left on the date of death of the property owner/life tenant. This deed is designed to leave the owner with all the powers of a solely-owned parcel but with an automatic conveyance of whatever is left upon the owner’s death to the remainderman. It can be a useful tool.
Question: I have just taken over my parent’s trust as the successor trustee. Do I need to apply for an EIN for the trust?
Answer: It depends on whether the trust has become irrevocable. If you become successor trustee of a revocable trust prior to the death of the grantor, then you will not need to obtain an employer identification number (“EIN”). The grantor will continue to report all of the income and expenses of the trust on his or her individual tax return using their own Social Security number. However, you should know that once the grantor dies, the trust becomes irrevocable. Once the trust becomes irrevocable, the trust becomes a separate tax-paying entity. You will need to complete the application for an EIN as soon as possible so you can properly report all post-death transactions under the trust’s EIN. If you are the trustee of a revocable or irrevocable trust, contact Bach & Jacobs, P.A at (941) 906-1231 for guidance on the proper administration of the trust. Attorney Fred Jacobs is a Board Certified Tax Lawyer and can advise you on the legal requirements that trustees must comply with under the Florida Trust Code and the Internal Revenue Code.
The Sarasota Herald Tribune covered Bach & Jacobs, PA founder Babette B. Bach’s selection as a 2014 Lawyer of the Year and a Top Rated Lawyer of 2014. Babette was named a Top Rated Lawyer of 2014 as a result of her rating from Martindale-Hubbell and her expertise in the field of elder law. The legal publication Best Lawyers named Babette as a 2015 Lawyer of the Year. You can read the article by clicking here.
Q: Do I need an EIN for my revocable living trust?
A: No. If you created a trust, funded it with your money, and reserved the right to revoke it, then the IRS does not consider it a separate tax-paying entity. The the trust will not require its own taxpayer identification number or employer identification number (referred to as an “EIN”). In fact, you cannot obtain an EIN for a trust that is revocable. Such a trust does not file its own tax return. If you would like to know if a trust would be appropriate for your estate plan or tax planning, contact Bach & Jacobs, P.A. at (941) 906-1231. Attorney Fred Jacobs is a Board Certified Tax Lawyer and can advise you on the use of trusts in your planning.
