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For more information on the author Jo-Anne Herina Jeffreys, Esq. Attorney At Law, CLICK HERE.Medicare is not free; there are premiums and deductibles. If you don't qualify for Medicaid and can't afford a Medigap policy, you may be able to get help paying for the costs of Medicare.There are four Medicare assistance programs, called Medicare Savings Plans:Qualified Medicare Beneficiary (QMB): The QMB program pays for Medicare Part A deductibles, Medicare Part B premiums and deductibles, and coinsurance and deductibles for Part A and Part B.Specified Low-income Medicare Beneficiary (SLMB): The SLMB program pays for Medicare Part B Premium.Qualifying Individual (QI-1) Program: The QI-1 program is an expansion of the SLMB program that you must apply for each year. It pays for Medicare's Part B Premium.Qualified Disabled and Working Individuals (QDWI) Program: The QDWI Program helps pay for Medicare's Part A premium.To qualify for these programs, you must be eligible for Medicare Part A (even if you are not enrolled) and have limited income and resources. The income and resource requirements can vary from state to state, so check with your state before applying. In general the following limits are applied. Program Income Limits QMBMonthly income must be at or below 100 percent of the poverty level. To find the current poverty guidelines, click here.SLMBMonthly income must be between 100 percent and 120 percent of the poverty level. To find the current poverty guidelines, click here.QI-1Monthly income must be between 120 percent and 135 percent of the federal poverty level. To find the current poverty guidelines, click here.QDWIMonthly income must be below 200 percent of the federal poverty level. To find the current poverty guidelines ,click here.In 2021, personal assets, including cash, bank accounts, stocks and bonds must not exceed $7,970 for an individual and $11,960 for married couples (For the QDWI program, your assets cannot exceed $4000 for an individual and $6000 for a married couple). Your house and car do not count as personal assets. Some states allow additional resources above these figures; for example, New York has no resource limits for the QI-1 Program.To apply for one of these programs, contact your state Department of Social Services office or the equivalent agency in your state.

A new administration usually means that tax code changes are coming. While it remains unclear exactly what tax changes President Bidens administration will usher in, two possibilities are that itwill propose lowering the estate tax exemption and eliminating the stepped-up basis on death. The first would affect only multi-millionaires, but the second could have an impact on more modest estates and their heirs.In 2017,Republicans in Congress and President Trump doubled the federal estate tax exemption and indexed it for inflation. For the 2021tax year, the exemption is $11.7million for individuals and $23.4million for couples. As long as your estate is valued at under the exemption amount, it will not pay any federal estate taxes, and the vast majority of estates do not owe any tax. President Biden has expressed an interest in lowering the estate tax exemption. It could be more than halved to $5 million or even reduced to the previous exemption of $3.5 million for individuals.Another possible tax change is to how property is valued when it is passed on at death. "Cost basis" is the monetary value of an item for tax purposes. When determining whether a capital gains tax is owed on property, the basis is used to determine whether an asset has increased or decreased in value. For example, if you purchase a stock for $10,000, that is the cost basis. If you later sell it for $50,000, you will have to pay taxes on the $40,000 increase in value.Under current law, when a property owner dies, the cost basis of the property is "stepped up." This means the current value of the property becomes the basis. For example, suppose you inherit a house that was purchased years ago for $50,000 and it is now worth $250,000. You will receive a step up from the original cost basis from $50,000 to $250,000. If you sell the property right away, you will not owe any capital gains taxes.According to an article in theNew York Times, the current administration may proposeto eliminate the basis step-up rule. In the past it was difficult to determine the original cost basis of some property, but in the digital age that information is more easily gathered. The change could result in tax increases for some people inheriting property that has risen significantly in value.Another question is whether eitherof these changes will be made retroactively. It is unlikely, but possible, that if Congress changes these rules later in the year, they could be made retroactive to the first of the year.If you are concerned about these rules changing, a trust may be a good way to protect your estate. Property in a trust passes outside of probate, and there are specific types of trusts that are designed to protect assets against estate taxes and capital gains. Talk to your attorney to determine if a trust is right for you.Tax experts agree that while changes to the tax code are likely, they probably wont happen right away. The coronavirus pandemic and the recession it has triggeredmean that Congress has other priorities at the moment.Please contact us to discuss your Estate Plan and tax planning options.Written & Submitted By: Jo-Anne Jeffreys, Elder Law- click here for more information*Click Here for Original Blog Link*

For more information on the author Jo-Anne Herina Jeffreys, Esq. Attorney At Law, CLICK HERE.Long-term care costs can add up quickly. For veterans and the surviving spouses of veterans who need in-home care or are in a nursing home, help may be available.The Veterans Administration (VA) has an underused pension benefit called Aid and Attendance that provides money to those who need assistance performing everyday tasks. Even veterans whose income is above the legal limit for a VA pension may qualify for the Aid and Attendance benefit if they have large medical expenses for which they do not receive reimbursement.Aid and Attendance is a pension benefit, which means it is available to veterans who served at least 90 days, with at least one day during wartime. The veteran does not have to have service-related disabilities to qualify. Veterans or surviving spouses are eligible if they require the aid of another person to perform an everyday action, such as bathing, feeding, dressing, or going to the bathroom. This includes individuals who are bedridden, blind, or residing in a nursing home.To qualify a veteran (or spouse) must have a net worth limit of $130,773(in 2021), which will increase each year with cost-of-living adjustments. But in the case of the VA, this number will include both the applicant's assets and income. It will be indexed to inflation in the same way that Social Security increases. An applicant's house (up to a two-acre lot) will not count as an asset even if the applicant is currently living in a nursing home. Applicants will also be able to deduct medical expenses from their income. This can include Medicare, Medigap, and long-term care insurance premiums; over-the-counter medications taken at a doctor's recommendation; long-term care costs, such as nursing home fees; the cost of an in-home attendant that provides some medical or nursing services; and the cost of an assisted living facility. These expenses must be unreimbursed (in other words, insurance must not pay the expenses). The expenses should also be recurring, meaning that they should recur every month.There is also a three-year look-back to determine if the veteran transferred assets in order to qualify for benefits. Applicants will have to disclose all financial transactions they were involved in for three years before the application. Applicants who transferred assets to put themselves below the net worth limit within three years of applying for benefits will be subject to a penalty period that can last as long as five years. This penalty is a period of time during which the person who transferred assets is not eligible for VA benefits. There are exceptions to the penalty period for fraudulent transfers and for transfers to a trust for a child who is unable to "self-support."The VA will determine a penalty period in months by dividing the amount transferred that would have put the applicant over the net worth limit by the maximum annual pension rate(MAPR) for a veteran with one dependent in need of aid and attendance. For example, assume the net worth limit is $130,773 and an applicant has a net worth of $117,773. The applicant transferred $30,000 to a friend during the look-back period. If the applicant had not transferred the $30,000, his net worth would have been $147,773, which exceeds the net worth limit by $17,000. The penalty period will be calculated based on $17,000, the amount the applicant transferred that put his assets over the net worth limit (147,773-130,773).Annual Pension Rate (MAPR). Following are the MAPRs for 2021:Single veteran-$23,238Veteran with one dependent-$27,549Single surviving spouse-$14,934Surviving spouse with one dependent-$17,815How it works. The amount a person receives depends on his or her income. The VA pays the difference between the veteran's income and the MARP. John, a single veteran, has income from Social Security of $16,500 a year and a pension of $12,000 a year, so his total income is $28,500 a year. He pays $20,000 a year for home health care, $1,122 a year for Medicare, and $1,788 a year for supplemental insurance, so his total medical expenses are $22,910. Subtracting his medical expenses from his income ($28,500 - $22,910), John's countable income is $5,590. John could qualify for $17,648($23,238 - $5,590) in Aid and Attendance benefits.To find out if you are eligible for Aid & Attendance benefits, please contact us for a consultation. Jo-Anne Herina Jeffreys is a VA Certified Attorney.

For more information on Jo-Anne Jeffreys, Elder Law Attorney, Click Here.The year was 1983: The U.S. invaded Grenada. A gallon of gas cost 96 cents. Michael Jacksons Thriller video premiered. That year was also the last time that Social Security recipients saw a cost-of-living increase steeper than the one just announced for 2022. This year, Social Security benefits will rise 5.9 percent, the sharpest upsurge since 1983s 7.4 percent jump.Cost-of-living increases are tied to the consumer price index, and rising inflation rates and gas prices caused by the ongoing coronavirus pandemic mean Social Security recipients will get a large boost in 2022. The 5.9 percent increase dwarfs last years 1.3 percent rise, and over the past decade hikes have averaged just 1.65 percent. The average monthly benefit of $1,565 in 2021 will go up by $92 a month to $1,657 a month for an individual beneficiary, or $19,884 yearly.The cost-of-living change also affects the maximum amount of earnings subject to the Social Security tax, which will grow from $142,800 to $147,000.For 2022, the monthly federal Supplemental Security Income (SSI) payment standard will be $841 for an individual and $1,261 for a couple.Part of the increase will be eaten up by higher Medicare Part B premiums, however. The standard monthly premium for Medicare Part B enrollees has not been announced yet, but it is projected to rise $10 a month to $158.30. And the 5.9 percent Social Security increase may not be enough for seniors to keep pace with rising health care and prescription drug costs.Youre glad that you get a 5.9 percent increase, but it doesnt feel like youre getting 5.9 percent when all of your other costs are going up much higher,saidNancy Altman, president of the advocacy groupSocial Security Works.Most beneficiaries will be able to find out their specific cost-of-living adjustment online by logging on tomySocial Securityin December 2021. While you can still receive your increase notice by mail, you have the option to get thenotice online instead.

For more information on the author Jo-Anne Herina Jeffreys, Esq. Attorney At Law, CLICK HERE.Medicare is not free; there are premiums and deductibles. If you don't qualify for Medicaid and can't afford a Medigap policy, you may be able to get help paying for the costs of Medicare.There are four Medicare assistance programs, called Medicare Savings Plans:Qualified Medicare Beneficiary (QMB): The QMB program pays for Medicare Part A deductibles, Medicare Part B premiums and deductibles, and coinsurance and deductibles for Part A and Part B.Specified Low-income Medicare Beneficiary (SLMB): The SLMB program pays for Medicare Part B Premium.Qualifying Individual (QI-1) Program: The QI-1 program is an expansion of the SLMB program that you must apply for each year. It pays for Medicare's Part B Premium.Qualified Disabled and Working Individuals (QDWI) Program: The QDWI Program helps pay for Medicare's Part A premium.To qualify for these programs, you must be eligible for Medicare Part A (even if you are not enrolled) and have limited income and resources. The income and resource requirements can vary from state to state, so check with your state before applying. In general the following limits are applied. Program Income Limits QMBMonthly income must be at or below 100 percent of the poverty level. To find the current poverty guidelines, click here.SLMBMonthly income must be between 100 percent and 120 percent of the poverty level. To find the current poverty guidelines, click here.QI-1Monthly income must be between 120 percent and 135 percent of the federal poverty level. To find the current poverty guidelines, click here.QDWIMonthly income must be below 200 percent of the federal poverty level. To find the current poverty guidelines ,click here.In 2021, personal assets, including cash, bank accounts, stocks and bonds must not exceed $7,970 for an individual and $11,960 for married couples (For the QDWI program, your assets cannot exceed $4000 for an individual and $6000 for a married couple). Your house and car do not count as personal assets. Some states allow additional resources above these figures; for example, New York has no resource limits for the QI-1 Program.To apply for one of these programs, contact your state Department of Social Services office or the equivalent agency in your state.

A new administration usually means that tax code changes are coming. While it remains unclear exactly what tax changes President Bidens administration will usher in, two possibilities are that itwill propose lowering the estate tax exemption and eliminating the stepped-up basis on death. The first would affect only multi-millionaires, but the second could have an impact on more modest estates and their heirs.In 2017,Republicans in Congress and President Trump doubled the federal estate tax exemption and indexed it for inflation. For the 2021tax year, the exemption is $11.7million for individuals and $23.4million for couples. As long as your estate is valued at under the exemption amount, it will not pay any federal estate taxes, and the vast majority of estates do not owe any tax. President Biden has expressed an interest in lowering the estate tax exemption. It could be more than halved to $5 million or even reduced to the previous exemption of $3.5 million for individuals.Another possible tax change is to how property is valued when it is passed on at death. "Cost basis" is the monetary value of an item for tax purposes. When determining whether a capital gains tax is owed on property, the basis is used to determine whether an asset has increased or decreased in value. For example, if you purchase a stock for $10,000, that is the cost basis. If you later sell it for $50,000, you will have to pay taxes on the $40,000 increase in value.Under current law, when a property owner dies, the cost basis of the property is "stepped up." This means the current value of the property becomes the basis. For example, suppose you inherit a house that was purchased years ago for $50,000 and it is now worth $250,000. You will receive a step up from the original cost basis from $50,000 to $250,000. If you sell the property right away, you will not owe any capital gains taxes.According to an article in theNew York Times, the current administration may proposeto eliminate the basis step-up rule. In the past it was difficult to determine the original cost basis of some property, but in the digital age that information is more easily gathered. The change could result in tax increases for some people inheriting property that has risen significantly in value.Another question is whether eitherof these changes will be made retroactively. It is unlikely, but possible, that if Congress changes these rules later in the year, they could be made retroactive to the first of the year.If you are concerned about these rules changing, a trust may be a good way to protect your estate. Property in a trust passes outside of probate, and there are specific types of trusts that are designed to protect assets against estate taxes and capital gains. Talk to your attorney to determine if a trust is right for you.Tax experts agree that while changes to the tax code are likely, they probably wont happen right away. The coronavirus pandemic and the recession it has triggeredmean that Congress has other priorities at the moment.Please contact us to discuss your Estate Plan and tax planning options.Written & Submitted By: Jo-Anne Jeffreys, Elder Law- click here for more information*Click Here for Original Blog Link*