http://medicaidsecretsforum.com/ Wed, 19 Jun 2013 14:12:51 +0000 MyBB http://medicaidsecretsforum.com/showthread.php?tid=654 Tue, 21 May 2013 02:29:32 -0500 http://medicaidsecretsforum.com/showthread.php?tid=654
Hello, Mr. Heiser,

First, I want to thank you so very much for your wonderful book! I ordered and received the 2013 edition a few weeks ago and have been learning so much from it! I can't thank you enough!

As a result of your information there, my 88 year-old mom (not married) is seriously considering changing the title of her home from her living trust to an irrevocable life estate in order to protect it from any possible future estate recovery by California's Medicaid program.

We had always thought that her house was well protected by being in title to her Living Trust. But now we have discovered in your outline of the California Medicaid rules (appendix pages 270-272, -- so valuable to us!) that California's estate recovery is an expanded one that does indeed include joint property, living trusts and revocable life estate interests (part 4a, page 272). But then you go on to say in part 4b that irrevocable life estate interests are exempt from estate recovery, at least at the present point in time.

Now, here is our first question, please.

If she were to establish an irrevocable life estate interest soon in her current home (gifting me, her only living child, with the remainder interest), would she still be able to sell the home if she ever wanted to do so? I am hoping that I will be able at some point to buy a home suitable to having her live there with me. So we need to know if it would be a viable plan to have her set herself up now with an irrevocable life estate in her current home, then sell it later if she moves into a new home belonging to me, and subsequently reinvest in a new life estate interest in my home at that later date. But since I'm not sure if (or when) I'll be able to buy such a home for us, we want to go ahead and protect her current home as soon as possible.

Second question, please:

If the above is a viable plan, in which the title to her home would transfer to me at the time of her death, would it then trigger a probate somehow? (We currently have it, and other of her assets, in her living trust to avoid probate.)

And third:

If she does decide to establish the irrevocable life estate interest, as above, would we be able to do this on our own without the assistance of an attorney? And if so, how would we go about it?


We would greatly appreciate it if you would post your response to all of this!

Gratefully,

Dee W.
Northern California]]>
Hello, Mr. Heiser,

First, I want to thank you so very much for your wonderful book! I ordered and received the 2013 edition a few weeks ago and have been learning so much from it! I can't thank you enough!

As a result of your information there, my 88 year-old mom (not married) is seriously considering changing the title of her home from her living trust to an irrevocable life estate in order to protect it from any possible future estate recovery by California's Medicaid program.

We had always thought that her house was well protected by being in title to her Living Trust. But now we have discovered in your outline of the California Medicaid rules (appendix pages 270-272, -- so valuable to us!) that California's estate recovery is an expanded one that does indeed include joint property, living trusts and revocable life estate interests (part 4a, page 272). But then you go on to say in part 4b that irrevocable life estate interests are exempt from estate recovery, at least at the present point in time.

Now, here is our first question, please.

If she were to establish an irrevocable life estate interest soon in her current home (gifting me, her only living child, with the remainder interest), would she still be able to sell the home if she ever wanted to do so? I am hoping that I will be able at some point to buy a home suitable to having her live there with me. So we need to know if it would be a viable plan to have her set herself up now with an irrevocable life estate in her current home, then sell it later if she moves into a new home belonging to me, and subsequently reinvest in a new life estate interest in my home at that later date. But since I'm not sure if (or when) I'll be able to buy such a home for us, we want to go ahead and protect her current home as soon as possible.

Second question, please:

If the above is a viable plan, in which the title to her home would transfer to me at the time of her death, would it then trigger a probate somehow? (We currently have it, and other of her assets, in her living trust to avoid probate.)

And third:

If she does decide to establish the irrevocable life estate interest, as above, would we be able to do this on our own without the assistance of an attorney? And if so, how would we go about it?


We would greatly appreciate it if you would post your response to all of this!

Gratefully,

Dee W.
Northern California]]> http://medicaidsecretsforum.com/showthread.php?tid=592 Thu, 09 May 2013 16:41:37 -0500 http://medicaidsecretsforum.com/showthread.php?tid=592 http://medicaidsecretsforum.com/showthread.php?tid=591 Thu, 09 May 2013 16:35:28 -0500 http://medicaidsecretsforum.com/showthread.php?tid=591 http://medicaidsecretsforum.com/showthread.php?tid=587 Wed, 08 May 2013 15:11:11 -0500 http://medicaidsecretsforum.com/showthread.php?tid=587 http://medicaidsecretsforum.com/showthread.php?tid=581 Mon, 06 May 2013 15:58:40 -0500 http://medicaidsecretsforum.com/showthread.php?tid=581
What a great forum
Thank you]]>
What a great forum
Thank you]]> http://medicaidsecretsforum.com/showthread.php?tid=579 Sun, 05 May 2013 15:24:21 -0500 http://medicaidsecretsforum.com/showthread.php?tid=579 A quit claim deed is being prepared to transfer the property to her disabled son.

OAC also states, that when the contract, trust or other binding instrument does not contain such a requirement, the provisions governing the sole benefits do not apply. A transfer for the sole benefit in which there is a provision in the trust, contract or other binding instrument to expend all of the transferred resources may provide for other beneficiaries.

What is the proper way to address the these provisions? Do we need to prepare an contract to address the provisions along with the quit claim deed?

Thank you.]]> A quit claim deed is being prepared to transfer the property to her disabled son.

OAC also states, that when the contract, trust or other binding instrument does not contain such a requirement, the provisions governing the sole benefits do not apply. A transfer for the sole benefit in which there is a provision in the trust, contract or other binding instrument to expend all of the transferred resources may provide for other beneficiaries.

What is the proper way to address the these provisions? Do we need to prepare an contract to address the provisions along with the quit claim deed?

Thank you.]]> http://medicaidsecretsforum.com/showthread.php?tid=571 Tue, 30 Apr 2013 22:00:45 -0500 http://medicaidsecretsforum.com/showthread.php?tid=571
Thank You]]>
Thank You]]> http://medicaidsecretsforum.com/showthread.php?tid=542 Tue, 16 Apr 2013 19:01:33 -0500 http://medicaidsecretsforum.com/showthread.php?tid=542
The issue is that prior to this, she lived with me and my husband, and while we didn't formally set anything in place she wanted to contribute to the household. So most months she would give us a couple of hundred dollars to help pay bills (lights, water etc.).
She is a retired teacher and nets around $1,650+ a month. She has a checking and savings account, but all funds there come from her monthly pension.

My questions are:
1. Is the money she gives for household bills considered gifts?
2. If they are, how can I report them?
3. As her pension comes in at the beginning of the month, would applying toward the end of the month be better as that is when she has the lowest amount in her checking account?
4. Her savings are minimal, but based on what I've read so far would possibly make her ineligible. What options do you suggest?

Thanks for a great resource on this much needed subject.]]>
The issue is that prior to this, she lived with me and my husband, and while we didn't formally set anything in place she wanted to contribute to the household. So most months she would give us a couple of hundred dollars to help pay bills (lights, water etc.).
She is a retired teacher and nets around $1,650+ a month. She has a checking and savings account, but all funds there come from her monthly pension.

My questions are:
1. Is the money she gives for household bills considered gifts?
2. If they are, how can I report them?
3. As her pension comes in at the beginning of the month, would applying toward the end of the month be better as that is when she has the lowest amount in her checking account?
4. Her savings are minimal, but based on what I've read so far would possibly make her ineligible. What options do you suggest?

Thanks for a great resource on this much needed subject.]]> http://medicaidsecretsforum.com/showthread.php?tid=541 Sat, 13 Apr 2013 12:56:35 -0500 http://medicaidsecretsforum.com/showthread.php?tid=541 http://medicaidsecretsforum.com/showthread.php?tid=530 Mon, 08 Apr 2013 13:13:09 -0500 http://medicaidsecretsforum.com/showthread.php?tid=530
Can Medicaid consider this a gift even though the home is still in his Trust?

I intend to sell the home soon and will eventually use the money to pay for the nursing home. Does the fact that the home is in a Revocable Trust disqualify it from the capital gains exclusion? I have a Durable General POA and could transfer the property out of the Trust, back into my father's name and then sell it if necessary.
Right now I am not as concerned about protecting assets as I am making sure that I don't do something to make him ineligible for Medicaid in the future.]]>
Can Medicaid consider this a gift even though the home is still in his Trust?

I intend to sell the home soon and will eventually use the money to pay for the nursing home. Does the fact that the home is in a Revocable Trust disqualify it from the capital gains exclusion? I have a Durable General POA and could transfer the property out of the Trust, back into my father's name and then sell it if necessary.
Right now I am not as concerned about protecting assets as I am making sure that I don't do something to make him ineligible for Medicaid in the future.]]> http://medicaidsecretsforum.com/showthread.php?tid=521 Mon, 01 Apr 2013 07:41:19 -0500 http://medicaidsecretsforum.com/showthread.php?tid=521
I have a husband and a wife who have both just entered a LTC (long-term care) facility pending Medicaid approval. Both share one primary checking account where all gross income sources are deposited monthly. The husband is currently over income eligibility for LTC Medicaid by $100. The family has now set up a second account where they plan to redeposit their father’s gross income into and pay his nursing home expenses from each month, minus the $50 personal needs allowance and $20 maintenance fee.

Since the primary account will receive the gross income of both the husband and wife, will that transaction and the transferring of his gross income into a second account each month present any problems for the wife in qualifying for Medicaid?

Also, they have a mobile home property and vehicle the family would like to sell. Where can I find out more about the irrevocable insurance policy you mentioned in one of the chapters as a vehicle for reducing “countable resources”?

Lastly, how important is it to express in writing to the County that both the husband and wife have an intent to return home IF they are able to?

Thank you.
Teri, Gerontologist]]>
I have a husband and a wife who have both just entered a LTC (long-term care) facility pending Medicaid approval. Both share one primary checking account where all gross income sources are deposited monthly. The husband is currently over income eligibility for LTC Medicaid by $100. The family has now set up a second account where they plan to redeposit their father’s gross income into and pay his nursing home expenses from each month, minus the $50 personal needs allowance and $20 maintenance fee.

Since the primary account will receive the gross income of both the husband and wife, will that transaction and the transferring of his gross income into a second account each month present any problems for the wife in qualifying for Medicaid?

Also, they have a mobile home property and vehicle the family would like to sell. Where can I find out more about the irrevocable insurance policy you mentioned in one of the chapters as a vehicle for reducing “countable resources”?

Lastly, how important is it to express in writing to the County that both the husband and wife have an intent to return home IF they are able to?

Thank you.
Teri, Gerontologist]]> http://medicaidsecretsforum.com/showthread.php?tid=520 Wed, 27 Mar 2013 11:58:01 -0500 http://medicaidsecretsforum.com/showthread.php?tid=520
So assume his expenses while not in nursing home are $3,000 per month instead of the $5,800 if private paying in the NH. So he needs to retain 36 months of $3,000, but he has $2,090 in income per month. So he needs to retain $910 per month x 36 months = $32,760. But then the penalty does not trigger until 3 years from now when he applies and otherwise qualifies. So at that point he only has $182,240 left. So he gifts $103,467 and retains $76,773 in the form of an annuity and triggers a 20.69 month penalty. His income of $2,090 per month and the annuity covers his private pay.

So if he is not in 'crisis' mode, he actually gifts less? Seems he should be able to gift more............ What am I missing? I was hoping to gift more than the $122,500 crisis mode 'half loaf' plan.

Thanks!]]>
So assume his expenses while not in nursing home are $3,000 per month instead of the $5,800 if private paying in the NH. So he needs to retain 36 months of $3,000, but he has $2,090 in income per month. So he needs to retain $910 per month x 36 months = $32,760. But then the penalty does not trigger until 3 years from now when he applies and otherwise qualifies. So at that point he only has $182,240 left. So he gifts $103,467 and retains $76,773 in the form of an annuity and triggers a 20.69 month penalty. His income of $2,090 per month and the annuity covers his private pay.

So if he is not in 'crisis' mode, he actually gifts less? Seems he should be able to gift more............ What am I missing? I was hoping to gift more than the $122,500 crisis mode 'half loaf' plan.

Thanks!]]> http://medicaidsecretsforum.com/showthread.php?tid=519 Mon, 25 Mar 2013 15:01:15 -0500 http://medicaidsecretsforum.com/showthread.php?tid=519
So what if she formed an IRREVOCABLE TRUST and funded it with $110K cash and then the trust loaned her the money to buy the house taking back a mortgage. The note secured by the mortgage could be set up for no payments but interest accrues at the Fed. Mid Term rate, with a balloon payment of all principal and interest due on demand after 20 years. IRC section 121 exclusion and section 1014 step-up would be preserved- she continues to hold title.

If she is institutionalized for more than 6 months, Medicaid will make her sell the home if she does not intend to return within the next 6 months. This is great, however, because all proceeds would go to the trust since no principal is being paid down on the loan which actually accumulates interest. Also, Medicaid might decide not to push the issue of selling the home since it has no equity.

If the trust actually held title, she would need an occupancy agreement and to pay FMV rent. Therefore, she does not want to make an outright transfer to the trust if this solution works better.

Does this method hold water?]]>
So what if she formed an IRREVOCABLE TRUST and funded it with $110K cash and then the trust loaned her the money to buy the house taking back a mortgage. The note secured by the mortgage could be set up for no payments but interest accrues at the Fed. Mid Term rate, with a balloon payment of all principal and interest due on demand after 20 years. IRC section 121 exclusion and section 1014 step-up would be preserved- she continues to hold title.

If she is institutionalized for more than 6 months, Medicaid will make her sell the home if she does not intend to return within the next 6 months. This is great, however, because all proceeds would go to the trust since no principal is being paid down on the loan which actually accumulates interest. Also, Medicaid might decide not to push the issue of selling the home since it has no equity.

If the trust actually held title, she would need an occupancy agreement and to pay FMV rent. Therefore, she does not want to make an outright transfer to the trust if this solution works better.

Does this method hold water?]]> http://medicaidsecretsforum.com/showthread.php?tid=516 Mon, 18 Mar 2013 12:27:37 -0500 http://medicaidsecretsforum.com/showthread.php?tid=516
Can I transfer the IRA to an annuity and then move the annuity to the irrevocable trust without paying income taxes and have the new annuity become a protected asset after five years?

I am 64 and do not plan on taking income from the IRA/Annuity until age 70.

Any other suggestions on how to protect the IRA?]]>
Can I transfer the IRA to an annuity and then move the annuity to the irrevocable trust without paying income taxes and have the new annuity become a protected asset after five years?

I am 64 and do not plan on taking income from the IRA/Annuity until age 70.

Any other suggestions on how to protect the IRA?]]> http://medicaidsecretsforum.com/showthread.php?tid=515 Sun, 17 Mar 2013 10:17:42 -0500 http://medicaidsecretsforum.com/showthread.php?tid=515 http://medicaidsecretsforum.com/showthread.php?tid=511 Mon, 11 Mar 2013 15:05:48 -0500 http://medicaidsecretsforum.com/showthread.php?tid=511
They also listed some of the things that were exempt in order to qualify for Medicaid. One of the things was that if you had a life insurance policy it could not have more than a $1,500 face value. What if a person has a policy that is over that? Mine is and I am concerned that my daughter, who is the beneficiary, won't get that money if I should have to be put into a nursing home.]]>
They also listed some of the things that were exempt in order to qualify for Medicaid. One of the things was that if you had a life insurance policy it could not have more than a $1,500 face value. What if a person has a policy that is over that? Mine is and I am concerned that my daughter, who is the beneficiary, won't get that money if I should have to be put into a nursing home.]]> http://medicaidsecretsforum.com/showthread.php?tid=510 Thu, 07 Mar 2013 12:35:32 -0600 http://medicaidsecretsforum.com/showthread.php?tid=510
I have one policy and his daughter has one policy. I am the sole owner annuitant; Mom has passed away last year. My question is what happens to my assets??

Thanks...I m so confused!]]>
I have one policy and his daughter has one policy. I am the sole owner annuitant; Mom has passed away last year. My question is what happens to my assets??

Thanks...I m so confused!]]> http://medicaidsecretsforum.com/showthread.php?tid=503 Mon, 11 Feb 2013 11:35:44 -0600 http://medicaidsecretsforum.com/showthread.php?tid=503
Question(s)

1. Is a Durable power of Attorney considered a Guardianship?

2. If no money has been transferred to the direct control of the Agent on behalf of the senior...does a guardianship exist?

3. IF the senior in question....is capable of handling their own affairs...and still has full mental faculties... and any savings, bank accounts are still in their name...isn't it best to leave it that way?

4. When does a guardianship exist?

thanks for your input...]]>
Question(s)

1. Is a Durable power of Attorney considered a Guardianship?

2. If no money has been transferred to the direct control of the Agent on behalf of the senior...does a guardianship exist?

3. IF the senior in question....is capable of handling their own affairs...and still has full mental faculties... and any savings, bank accounts are still in their name...isn't it best to leave it that way?

4. When does a guardianship exist?

thanks for your input...]]> http://medicaidsecretsforum.com/showthread.php?tid=502 Fri, 08 Feb 2013 08:26:03 -0600 http://medicaidsecretsforum.com/showthread.php?tid=502
QUESTION: Can the DPOA be signed while a patient is in a Nursing home or ALF?

Its probably best if my mother gets it before....but her health has deteriorated...and she probably needs full time or part time attention (help with shopping, drs visits,etc).

In what instance would a DPOA not be recognized or counted as not valid?

thanks very much!]]>
QUESTION: Can the DPOA be signed while a patient is in a Nursing home or ALF?

Its probably best if my mother gets it before....but her health has deteriorated...and she probably needs full time or part time attention (help with shopping, drs visits,etc).

In what instance would a DPOA not be recognized or counted as not valid?

thanks very much!]]> http://medicaidsecretsforum.com/showthread.php?tid=501 Mon, 04 Feb 2013 10:36:37 -0600 http://medicaidsecretsforum.com/showthread.php?tid=501
I purchased Mr.Heiser's book....and it is very informative.

I am the sole beneficiary of her estate...as her other children have basically abandoned her and in her will she leaves all financial interest to me (all bank accounts are left "in trust to me") and only personal property to other siblings.

QUESTION: If my mother lends me money...and i give her a promissory note for equal payments under her expected remaining life term...BUT she passes before the entire amount is repaid....WHO gets the balance of the LOAN?

PART 2: if the loan is made to a LLC controlled by me....can i be the beneficiary of the loan if she passes before loan is repaid?

My main concern is the state or Medicaid coming after me for the balance of any loan that was owed to her...since that money would be owed to her estate. I thought your book mentioned that the Medicaid recovery can come after the beneficiaries of any loans that are owed to her?

Forgive me..but its been very stressful time.

Thanks very much....]]>
I purchased Mr.Heiser's book....and it is very informative.

I am the sole beneficiary of her estate...as her other children have basically abandoned her and in her will she leaves all financial interest to me (all bank accounts are left "in trust to me") and only personal property to other siblings.

QUESTION: If my mother lends me money...and i give her a promissory note for equal payments under her expected remaining life term...BUT she passes before the entire amount is repaid....WHO gets the balance of the LOAN?

PART 2: if the loan is made to a LLC controlled by me....can i be the beneficiary of the loan if she passes before loan is repaid?

My main concern is the state or Medicaid coming after me for the balance of any loan that was owed to her...since that money would be owed to her estate. I thought your book mentioned that the Medicaid recovery can come after the beneficiaries of any loans that are owed to her?

Forgive me..but its been very stressful time.

Thanks very much....]]>