Episode Summary
The start of the new year brings new numbers that affect financial decisions and health care. Jeff provides an update on the 2023 numbers you should know for tax planning and Medicaid qualification.
Jeffrey R. Bellomo, the founder of Bellomo & Associates, is a licensed and certified elder law attorney with a master’s degree in taxation and a certificate in estate planning. He explains complex legal and financial topics in easy-to-understand language.
Key Takeaways
01:45 – Tax Planning
The annual exclusion gift amount is $17,000/person for 2023
Most people will not be subject to federal estate tax due to the high dollar amount that triggers the tax
Pennsylvania (PA) does have an inheritance tax
Actions in one area of planning (e.g., taxes) can affect other areas of planning (e.g., estate planning)
09:00 – Medicaid Planning
Case workers use PA’s Long-Term Care Handbook
If a person’s income is more than $2,742/month, PA could recover assets if the person has more than $2,400 in assets in their name alone at time of death
If a person’s income is less than $2,742/month, PA could recover assets if the person has more than $8,000 in assets in their name alone at time of death
PA can pursue asset recovery from probate estate only
Non-probate assets are jointly owned or tied to a beneficiary
Sound estate planning can avoid asset recovery by the state
12:25 – The Waiver Program
A PA program that can be thought of as “Medicaid in the home”
The income cap limit to qualify is $2,742/month
PA might allow a person to qualify even with an additional $500/month in income if the $500 is funneled to an Excess Income Trust
14:32 – Married Couple Assets
Different rules apply for “institutionalized” spouses and “community” spouse
The community spouse can keep the house, the car, and their own retirement account—all remaining assets go into a pot
When the pot is less than $29,724, the community spouse can keep the entire pot
When the pot is between $29,724 and $148,620, the community spouse can keep one half of the pot
17:21 – Married Couple Income
If the community spouse’s monthly income is between $2,288.75 and $3,715.50, then they can keep it
If the community spouse’s monthly income is less than $2,288.75, then they can get a portion of the institutionalized spouse’s income
The minimum excess home equity limit for 2023 is $688,000
Links and Resources Mentioned
Pennsylvania Long-Term Care Handbook
http://services.dpw.state.pa.us/oimpolicymanuals/ltc/Long-Term_Care_Handbook.htm
Bellomo & Associates workshops, including Medicaid
https://bellomoassociates.com/workshops/
For more information, call us at (717) 845-5390.
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LinkedIn: https://www.linkedin.com/in/bellomoandassociates
Episode 54: Our Revolutionary Estate Planning Process: Protect Your Future with Bellomo & AssociatesThe team at Bellomo & Associates is passionate about providing education and empowering your family with the knowledge you need to make informed estate planning and elder care decisions. Our educational workshops and updated service model are revolutionizing estate planning practices all across the country.The Three Secrets Workshop explains how to protect your family's legacy and why planning for health care costs and long-term care is essential. Our Red Wagon Club offers ongoing support and assistance. And, using our combined estate planning and tax management expertise, we can set up an innovative Roth Alike Trust to protect your retirement assets while promoting tax-free growth. With these programs and others, youll enjoy the assurance that your plans align with changing laws, family dynamics, and individual needsultimately giving you greater peace of mind that your assets are protected now and into the future. Don't forget to Follow, Like, and Subscribe for upcoming podcast episodes: Apple: https://podcasts.apple.com/us/podcast/our-revolutionary-estate-planning-process-protect-your/id1634278675?i=1000624001620 YouTube: https://youtu.be/CfnuYaUFmKg Spotify: https://open.spotify.com/episode/6UL2EaUh4Ju9gPM5AuzBpb?si=UJ0iJ-M7Q9q0JKF1FY5QXw
Episode 53: Benefits Unlocked: Mastering Medicare and Medicaid for Your Future Weve been getting a lot of questions about the differences between Medicare and Medicaid. Its important to understand the distinctions so that you can make the most of the benefits that are available to you. Our free workshops provide in-depth educational opportunities, and we encourage you to sign up at our websiteboth in-person and online learning are offered. Until then, take advantage of Jeffs easy-to-understand explanations of Medicare and Medicaid as he clarifies misconceptions about these programs and describes how to protect your assets while also ensuring essential health care.Don't forget to Follow, Like, and Subscribe for upcoming podcast episodes: Apple: https://podcasts.apple.com/us/podcast/benefits-unlocked-mastering-medicare-and-medicaid-for/id1634278675?i=1000623269652 YouTube: https://youtu.be/vff3d039A18 Spotify: https://open.spotify.com/episode/3jxsDXULALcXoxrzXKXF5O?si=QRbmbQZoSHyAv_gVDhgAzQ
Episode 52: Estate Planning for Grandparents: The Best Way to Pass Down Your Assets People often think they should transfer their assets directly to their grandchildren (or children) to avoid inheritance tax. Jeff explains why signing over assets to someone else can present serious risks to a familys financial health. He suggests using a trust instead so that you can ensure that your wealth will be there for your children and grandchildren when needed. As with all the education provided by Jeff and the team at Bellomo & Associates, were confident that a solid understanding of this topic will help you make smart decisions that safeguard your future and that of your family. Don't forget to Follow, Like, and Subscribe for upcoming podcast episodes: Apple: https://podcasts.apple.com/us/podcast/estate-planning-for-grandparents-the-best-way-to-pass/id1634278675?i=1000622478823 YouTube: https://youtu.be/AKX8jGw1GCE Spotify: https://open.spotify.com/episode/4sBLyrmJsgj0ggU0purvHT?si=jFRCt36BRcinVui-FSiMmA