What Does Medicaid Consider ‘Fair Market Value’ When Selling a House?
Question: If a person is applying for Medicaid or already receives Medicaid benefits, what is the penalty if his or her house does not sell for "fair market value"? Additionally if it is not realistic that the house would sell for “fair market value” because it needs...
How Much Can You Give Away and Still Qualify for Medicaid?
To be eligible for Medicaid, you cannot have recently transferred assets. Congress does not want you to move into a nursing home on Monday, give all your money to your children (or whomever) on Tuesday, and qualify for Medicaid on Wednesday. So, it has imposed a...
Undue Hardship and the Medicaid Penalty Period
If you are planning to apply for Medicaid, you might not realize that you should think twice before transferring any of your assets. If you transfer assets within five years of applying for Medicaid, you could in fact face a penalty period. During this time, you would...
Medicaid Spend Down: Pay for More Than Just Medical Bills
Since the 1960s, Medicaid has provided health care coverage for low-income people across the United States. For millions of seniors, Medicaid offers financial assistance, helping them to cover the cost of long-term care services. Today, this joint federal-state...
What Is Medicaid, and How Does Medicaid Work?
Medicaid is a public benefits program that provides health insurance to low-income children, seniors, and people with disabilities. In addition, it covers care in a nursing home for those who qualify. Different states may have different names for the program. For...
Up to $7,500 Tax Credit for the Elderly and Disabled
Low-income seniors and people with disabilities may be missing out on a tax credit that could reduce their tax liability by up to $7,500 this tax season. To qualify for the Senior Tax Credit for the Elderly and Disabled, individuals must either be above age 65 or...
Federal Program Helps Nursing Home Residents Move Home
Once someone enters a nursing home, it isn't always easy to move out again. While some residents may prefer nursing home care to living on their own, others would rather be independent. For residents who want to move out but need some assistance to live on their own,...
The SECURE Act & SECURE Act 2.0: Effects on Special Needs Planning
The SECURE (Setting Every Community Up for Retirement Enhancement) Act, passed at the end of 2019, changed a number of rules regarding inherited IRAs, making it more difficult for most beneficiaries to save on taxes by "stretching" distributions over many years....
Key Decisions in Setting Up a Special Needs Trust
Simply defined, a trust is an agreement between two people -- a grantor who donates funds to the trust and a trustee who manages those funds according to the grantor's wishes, which are laid out in a trust document. The funds in the trust are typically used to assist...
Medicaid Planning Protects Your Home
Your most valuable property may be your home, which is true for many people. You likely want your children to inherit that value when you pass away. However, you may also have concerns about planning for the future, especially if your health declines and you need...
Does My Mom Need a New Power of Attorney If It Has the Wrong Addresses on It?
Question: My mom has a power of attorney with both my brother and me named as agents. The power of attorney document lists our wrong addresses -- we have all moved since she first had it drafted. Is it still good? Answer: It depends on whether just you and your...
Thinking About & Securing You Legacy
Worrying about your legacy is a personal choice, and individuals may have different reasons for considering the impact they leave on the world. From financial security of loved ones, preserving memories, passing down family traditions, community influence, and being...
Should I Maintain a Property Likely to Be Taken By Medicaid?
Question: My sister is in a nursing home for the rest of her life, and I have POA. Her care is paid by Medicaid. We pay utilities and property taxes on her vacant trailer to maintain it. Medicaid wants us to use our sister's small income to pay the nursing home bills....
Three Essential Estate Plan Documents for Parents of Children with Special Needs
If your child has special needs, a standard estate plan -- will, trust, power of attorney, and health care proxy -- may not be adequate for your family. If your child will not be able to support herself or live independently as an adult, you need to make special...
Will I Lose My Disability if I Work Part-Time?
According to the Center on Budget and Policy Priorities, 7.4 million people received Social Security Disability Insurance (SSDI) payments in 2023, including 89,000 spouses and 1.1 million children. SSDI supports workers who develop disabilities before they retire, as...