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      Increase to Minimum Monthly Maintenance Needs Allowance

      The 2012 federal poverty level guidelines were recently published by the Department of Health and Human Services.  Within the guidelines a new minimum monthly maintenance needs allowance ("MMNA") of $1,891.25 was outlined for the 48 continguous states and the District of Columbia.  This is an increase of $52.50 from the current minimum MMNA of $1,838.75.  Minimum MMNAs of $2,365 and $2,176.25 were outlined for Alaska and Hawaii, respectively.  A complete list of the federal ...

      10 Income Tax Tips for 2012

      1.  The entire cost of maintenance in a nursing home or home for the aged, including meals and lodging, is a medical expense if an individual is there because of a physical condition and the availability of care is a principal reason for the individual's residence. 2.  Premiums paid for a qualified long-term care insurance policy are a medical expense, but the deductible amount of the premium is limited by the age of the individual at the close of the tax year.  The inflation-a ...

      Asset Protection Trust in Veterans Benefits Planning

      An Asset Protection Trust ("APT") is an Intentionally Defective Grantor Trust.  An Intentionally Defective Grantor Trust is a trust that treats the assets in the trust differently for income tax purposes than for estate tax and gift tax purposes.  The veteran will be the grantor, but not a beneficiary.  The trust utilizes Internal Revenue Code § 671-677 which afford differential tax treatment for income tax purposes. For most veterans their major asset is their residence.  ...

      A Medicaid Agency's Right as an Annuity Beneficiary

      A recent court case, Hutcherson v. Arizona Health Care Cost Containment System Administration ("AHCCCS"), brought a ruling down regarding the State's recovery rights as a beneficiary of a Medicaid Compliant Annuity.  Within the decision: "We hold that the 2006 amendment to 42 U.S.C. § 1396p(c)(1)(F)(i) creates a right in the State to recover as a remainder beneficiary against a community spouse's annuity for an institutionalized spouse's medical costs.  We further hold that the St ...