Medicaid Compliant Products
In Florida, Personal Services Contracts ("PSK"), which are also referred to as Caregiver Agreements, are widely used as a spend-down tool for Medicaid and/or VA benefits planning.
The PSK generally serves four purposes:
It reduces an applicant's countable resources to an acceptable level, which entitles the applicant to receive benefits;
It outlines the duties and obligations of the parties;
It establishes the compensation that will be paid to the caregiver; and
It dicta ...
Almost four years have passed since President Bush signed the Deficit Reduction Act of 2005 ("DRA") into law. Forty-eight states have since passed the legislation, yet many elder law attorneys are not aware of an immense planning opportunity that still exists.
When DRA was signed into law in 2006, it was clear that some annuities required the state Medicaid program to be named as the beneficiary. If that was the case, the beneficiary designation was only to the extent that Medicai ...
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 ...
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.
When clients plan to pay for long-term care services, they have certain options, including: private pay, VA benefits, Medicaid, or a combination thereof. As would be expected, private pay is the preferred method, in that cash is king and those with cash are in the catbird's seat. They can choose from 24 hour home health care to assisted living to a single room in a nursing home.
But who has sufficient cash to meet the objective? Very few! For most, unless they purchase ...
When the Deficit Reduction Act of 2005 ("DRA") was signed into law on February 8, 2006, by President Bush, the intent of the legislation was to reign in national spending. Part of the DRA included eligibility criteria for Medicaid benefits. States were required to be in compliance with the provisions of DRA as a pre-condition to receiving federal Medicaid funds. The US Department of Health & Human Services, Centers for Medicare & Medicaid Services ("CMS"), provides gu ...
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 ...
Now, with the Deficit Reduction Act of 2005 ("DRA") firmly in place, to the exception of the District of Columbia, Hawaii, Illinois, and New Jersey, the question has been asked "Did DRA have a real impact on crisis Medicaid planning?" Without question, the answer is "Yes!"
The primary impact relates to the fact that all gifts within the 60 month look-back period are pooled together, and the resulting figure is then divided by the applicable monthly divestment penalty divisor, creatin ...
With more elder law attorneys expanding their practices to include Veterans Aid & Attendance planning, many plans will fail because the financial advisor/insurance agent did not understand the applicable Medicaid rules. As a result, inappropriate products are sold to the client and/or his or her family.
Avoid the Medicaid Trap by working with qualified representatives at Krause Financial Services.
Question: What needs to happen to the monthly income generated by a Gifting/Short-Term Medicaid Compliant Annuity Plan when the individual unexpectedly goes to the hospital and re-enters the Medicare system for skilled nursing home care? Assume that the individual has a Medicare supplemental insurance plan.
Answer: By the end of the month, a Medicaid applicant/recipient must find a way to spend-down the monthly income. If the income is not properly spent-down, it converts to a resou ...
