Don’t Forget to Evaluate Possible Mental Disabilities

In applying for Social Security Disability or SSI benefits, attorneys and claimants generally focus on physical disabilities. These physical disabilities can include heart problems, back disorders, or respiratory problems.

Many times, possible mental disabilities are not considered. There can be many reasons that this failure to consider occurs. Claimants may not bring the mental symptoms up in applying or to the attorney’s attention. Claimants may be embarrassed or fail to acknowledge that they have a mental condition.

It is important to remember that mental disabilities can qualify a Claimant for Social Security Disability or SSI benefits just as physical disabilities can. Therefore, mental disabilities should not be ignored.

It is not unusual for persons with major physical disabilities to develop severe depression or anxiety. The Social Security Administration does not consider what caused the mental disability. The fact that the mental disability may have been caused by a physical disability does not matter.

If you are experiencing unusual symptoms such as anxiety, depression, sleeping problems, changes in eating, lack of energy, or isolation, you need to bring these symptoms to the attention of your attorney or Social Security worker.

 

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Secrets You Need To Know

Please join us for a informative workshop on Tuesday May 22, 2018 at The Blake at Lafayette 400 Polly Lane, Lafayette, La.  We are having 3 sessions at 9:30 am, 12:00 pm, and 6:00 pm.  To register please call 225-892-9702

New Medicaid Numbers

 

Community Spouse Resource Allowance $123,600
Resource Allowance for an Individual $2,000
Resource Allowance for a Couple
(Both husband and wife in a nursing home)
$3,000
Monthly Maintenance Needs Allowance $3,090.00
Monthly Personal Needs Allowance $38
Divestment Penalty Divisor $4,000
Maximum Home Exclusion $572,000

 

Free Senior Talk

There will be a Free Senior talk given at the Wyndham Garden Hotel 5600 Bluebonnet Blvd. Wednesday, March 28, 2018 at 9:30am, 12:00 and 4:00pm.  Call 225-892-9702 to reserve your spot.

Don’t Delay in Getting A Powers of Attorney!

It is very common for people to put off executing powers of attorney. In fact, recent studies show that 80% of adults do not have an executed power of attorney. Most people think that powers of attorneys are for people that are sick or old.

In the real world, none of us are guaranteed capacity even today. An accident or health issue can take our mental or physical capacity away from us quickly without prior warning. We would be unable to take care of our own person and property. No one can predict when a person will lose capacity.

The execution of a valid durable powers of attorney is relatively quick, easy and fast. When a person fails to plan in advance, that person is “playing with fire”. Many learn the lesson the hard way. They wait until it is too late.  The family may be unable to get the power of attorney executed because the person has lost capacity. The family may have the person sign a power of attorney where capacity is an issue. This can lead to family disputes and/or challenges to the document.

If you have any questions concerning powers of attorney, living wills and advanced medical directives, you should contact an experienced estate planning attorney.

Kent S. DeJean

 

!!!DISASTER ALERT!!!

Any assistance received due to a declared major disaster or catastrophe by the President of the United States of America, is permanently excluded as a resource for Medicaid.

The funds provided should be identifiable as disaster funds. The FEMA program money received by flood victims is considered to be disaster assistance, and any interest earned is excluded as an income resource.

If you have any questions or need any further information, please give us a call at 225-769-4200, or visit our website at http://www.LosavioDeJean.com

Medicaid Eligibility & Spousal Retirement Accounts

 

 

Currently there are 31 states* where Medicaid treats a community spouse’s IRA account as a countable resource. Thus, before an institutionalized spouse can qualify for Medicaid benefits, the community spouse’s IRA account must be either protected or spent-down.

Protecting the Community Spouse’s IRA

The best way to protect the community spouse’s IRA account is to make it part of his or her community spouse resource allowance (CSRA). In 2015, with the maximum CSRA being $119,220, if a couple had total countable resources of $275,000 ($175,000 of which was in the community spouse’s IRA account) the community spouse would be advised to leave $119,220 in the IRA account. As for the balance of $55,780, the community spouse would further be advised to invest the amount into a tax-qualified DRA compliant immediate annuity (Tax-Qualified Annuity, or TQA).

Taxation and the Community Spouse’s IRA

The $119,220 remaining in community spouse’s IRA account would not be subject to income taxation. As for the funding of the TQA – which was accomplished by an IRA Direct Transfer (preferred method) or a 60-day IRA Rollover** – the funding transaction would not be subject to income taxation. However, as the community spouse receives the monthly payments from the TQA, he or she would be taxed on the payments received in the given year.

Eliminating the Remaining Spend-Down

As for the remaining spend-down of $100,000, the community spouse would be advised to invest the amount into a DRA compliant immediate annuity (DCIA). Since a DCIA involves after-tax dollars, unlike the TQA, which involves pre-tax dollars, only a small portion of each payment is subject to income taxation in the year of receipt.

One Annuity versus Two Annuities

For purposes of simplicity, some clients have requested to use only one annuity rather than the two detailed above. However, because the Internal Revenue Code does not allow qualified funds (pre-tax) to be mixed with non-qualified funds (post-tax), two annuity contracts are required.

Conclusion

At Krause Financial Services, we understand that Medicaid planning with IRAs is complicated. However, between our unique annuity product line and vast state-specific Medicaid knowledge, we are more than equipped to handle your most challenging cases. So, if you have a case involving a countable IRA, please do not hesitate to get in touch with us. We look forward to it!

WORKSHOP

Mr. Peter. J. Losavio, Jr.  is giving a workshop “Don’t Go Broke in a Nursing Home” on Thrusday November 12th , 2015 at 4:00 and 6:00 pm at Sunrise of Baton Rouge 8502 Jefferson Hwy., Baton Rouge, LA 70810.  To attend please call 1-800-426-6104 to reserve your spot.

Don’t Go Broke in a Nursing Home

Mr. Peter J. Losavio, Jr. will be giving a seminar at the Zachary Branch Library Conference Room Tuesday October 20th @ 4:00pm and 6:00pm and Tuesday October 27th at 4:00pm and 6:00pm.  To attend this seminar call 1-800-426-6104 to reserve your seat.

Medicaid Estate Recovery: Barrier to Medicaid Enrollment

With more people becoming eligible for Medicaid, one question repeatedly comes up: “will receiving Medicaid coverage jeopardize my family home?” Depending on the circumstances, the answer can be complicated. But states can do much to make it less complex.

The fact is that states can recover against the estates of some Medicaid beneficiaries, but only after the beneficiary passes away, and only in certain circumstances. Federal law actually requires that states try to recover from the estates of Medicaid beneficiaries who received nursing facility services and/or home and community-based services when they were age 55 or older. In other words, federal law sets the floor for Medicaid estate recovery by states.

Complicating matters is that states have the option to recover for more than what is federally required. States may recover from individuals age 55 and older for any items or services covered under the state’s Medicaid plan. California is one of just a few states that has taken the option to recover for all covered services provided to individuals age 55 and older. Currently, a bill is moving through the state legislature to limit recovery to only what is federally required. Last year, a similar bill received unanimous support from the California legislature, but was vetoed by the governor due to budgetary concerns.

It is important to keep in mind that there are exceptions to when a state can recover and from whom it can do so. For example, Medicaid estate recovery cannot occur during the lifetime of a surviving spouse or when there is a surviving child under age 21 or a blind or disabled child of any age. Also, states must establish procedures for waiving estate recovery when it would cause an undue hardship. Yet many states do not have clear undue hardship policies, leading to increased denials and making it difficult for family members to figure out who qualifies for a hardship waiver and in which circumstances.

State policy makers should also realize that, for the next couple of years, states will not keep recovered claims for the Medicaid expansion population and after 2016 will still keep only a small amount. When states recover from the estates of former Medicaid beneficiaries, they return to the federal government the portion that represents the federal share of expenditures on an individual’s Medicaid covered services. Since services provided to the Medicaid adult expansion population are 100 percent federally funded for the first three years (2014-16), and almost fully federally funded thereafter, states will have to return to the federal government the full amount collected (and in future years close to the full amount). States are essentially serving as a collection agency for the federal government.

Many have identified estate recovery rules as a potential barrier to enrollment in Medicaid. Individuals may be hesitant to enroll in Medicaid because they own a home that they want to leave to their adult children when they pass away. Advocates must urge states to limit estate recovery to what is federally required, and advocate for clear exceptions policies to ensure that individuals and families feel comfortable enrolling in Medicaid and getting the care that they need.