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Questions & Answers (cont.)
Q.
What If I Need Care,
But Have Too Much Income?
A.
In Florida, if an ill
person’s monthly income exceeds $1,869, eligibility will be denied without
the use of a Qualified Income Trust (QIT). This specialized trust holds
the excess income and allows for the ill person to obtain the needed
Medicaid benefits.
Q.
What If My
Spouse Needs Care, But I Have Only a Small Amount Of Income To Live On?
A.
The law clearly allows for income to be diverted to the spouse still at
home so that his/her standard of living will be maintained. There is a
minimum and maximum income level set which may be diverted back to the
at-home spouse.
Q.
Can I Give Away
Assets?
A.
Giving assets to your
spouse is perfectly legal and no disqualification or penalties apply. However, giving assets
away to a non-spouse within a lookback period creates disqualification
which may last several months or years; this includes the $12,000 (as of
2006) per year allowed under gift tax law.
Unlike the old law which viewed gifts
of smaller amounts of little consequence, the new federal Medicaid law
enacted on February 8, 2006 harshly penalizes gifts of any amount
or kind. You must seek counsel from a Board Certified Elder Law Attorney
before making any gifts, including donations to your church or favorite
charity. Any gifts made in a 5-year period preceding your request
for government
financial assistance creates disqualification for the sick senior. And, if
the senior is married, gifts made by the spouse will also result in a
denial of necessary benefits for the sick senior.
Q.
Can I Protect
My Assets With a "Medicaid Friendly Annuity?"
A.
The new Medicaid law, enacted on February 8,
2006, severely penalizes the use of the “balloon-style annuity”; such
annuities were heavily used under the old rules. If an annuity is allowed
under the new law, the State of Florida must be named as the primary
beneficiary in most cases. This is an area of complexity where an expert
in Elder Law can offer guidance.
Q.
What Planning Opportunities Exist Under the New
Medicaid Laws?
The new
Medicaid law enacted on February 8, 2006, though very complex and
profoundly damaging to the asset preservation opportunities available to our seniors, does
not eliminate all planning options. Please be assured that this firm, with
the resources of a certified elder law specialist, will always offer the
best planning tools and advice available to meet our clients’ needs,
regardless of legislative changes.
For more information on
Medicaid in Florida, you may visit
FloridaMedicaid.com.
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