Insurance Planning
When trying to pre-plan with tax-qualified funds, whether the planning is for Medicaid or VA benefits, we all know that the primary goals are to get rid of excess assets, while minimizing tax liabilities. A balance must be created between program eligibility and tax consequences, a task with which very little text and guidance is provided in order to accomplish. In a handful of states, retirement funds owned by an ineligible spouse or even an institutionalized individual are simply ...
In my practice of advising elder law attorneys regarding their clients' Medicaid and VA needs, if a case involves a trust and the need to accumulate income - no annual distributions, I typically recommend using a non-qualified fixed annuity as the investment vehicle.
The primary reasons why I make such a recommendation are that a fixed annuity offers safety of principal, a guaranteed return over a guaranteed period, and income tax deferral. Unlike a variable annuity which is s ...
Whenever a caregiver agreement is utilized in a Florida Medicaid or VA Planning case, there are always questions regarding income taxes. When, and to what extent, does the care recipient get to deduct the payment or payments? When, and to what extent, does the caregiver child have to recognize taxable compensation or income?
Section 61(a) of the Internal Revenue Code ("IRC") defines "gross income" as compensation for services... Thus, it is clear that when a caregiver child ...
It is a well known fact that most seniors who are receiving Medicaid benefits do not receive the best dental care, and many receive none at all. But did you know that poor dental care can lead to heart disease, and other health conditions, resulting in an untimely death?
According to my dentist, a person's mouth has almost 700 different types of bacteria living in it. Some of the bacteria are good, but some are bad. The combination of bacteria helps in breaking down food par ...
When a C Corporation purchases a Tax-Qualified Long-Term Care Insurance Policy ("TQLTCIP") on behalf of any of its employees, or their spouses and dependents, the corporation is entitled to take a 100% deduction as a business expense on the total premium paid. Additionally, the corporation's purchase of a TQLTCIP is not subject to any non-discrimination rules, thus allowing the corporation to be selective in the classification of the employees it selects to cover. A corporate resol ...
After more than 20 years in elder law, I have learned that with the wave of baby boomers approaching retirement, there will be an unprecedented demand for professional long-term care services, including those provided by home health care agencies, assisted living facilities, and nursing homes. With the increased demand, prices for the services are likely to skyrocket, making them unaffordable to most.
Long-term care insurance ("LTCI") provides the financial leverage necessary to overcom ...
At Krause Financial Services we specialize in Crisis Medicaid Planning and Veterans Benefits Planning.
Obtain all of your Medicaid and VA compliant insurance products in one convenient place. You no longer have to waste your time searching for insurance companies and insurance agents that claim to offer the products and services you need.
Within this past week I received several inquiries from the Ask Dale section of this web site. Specifically, one of the inquiries was regarding the parties of an annuity contract. Generally there are four potential parties to an annuity contract; the owner, the annuitant, the beneficiary, and the issuing insurance company. As a general overview, think of the owner as the person who purchases the annuity and the annuitant as the individual whose life will be used in determining ...
Your clients know that long-term care risks exist, but most would rather not think about them. Instead, they falsely believe that the financial problems caused by living too long will not happen to them, but only to others. To illustrate the problem, a recent study completed by the American Academy of Actuaries stated that many baby boomers can expect to have a retirement lasting 30 years. The study also reflected the fact that a 65 year old couple has a 58% chance of one of ...
I always advise protecting and preserving the gifted portion of a Gifting/Medicaid Compliant Annuity Plan in the event that any portion of the gift should need to be returned to the Medicaid applicant.
As a means to preserve the gift throughout the duration of a Gifting/Medicaid Compliant Annuity Plan, a Single Premium Tax-Deferred Annuity is a simple and convenient solution, in addition to providing your client with flexibility, safety, and attractive yields. The 12 month plan provides ...
