Episode 27 - New 2023 Numbers for Tax and Medicaid Planning
Bellomo & Associates
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May 26, 2023
Pennsylvania - South Central PA
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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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- To view the original version of this article visit youtu.be/zp4M0gCe9Yg
- Seniors Blue Book was not involved in the creation of this content.
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Local Services By This Author
Bellomo & Associates
Estate Planning 3198 E Market St, York, Pennsylvania, 17402We Educate so what happened to the Bellomo Family doesn't happen to yours!Our firms mission is to ensure that you and your family never needlessly, painfully suffer. Every team member has a personal story that has brought us here to advocate for you and your family. We want to replace your burden with peace of mind. We have the answers, but more important, we have your back.Bellomo & Associates, LLC advises Individuals and families, business owners, senior citizens, and their families about the estate planning and elder law challenges facing them today. For seniors and their families facing the issues of aging, or for those of any age who wish to protect their familys financial future, we counsel clients and provide solutions on Asset Protection; Specials Needs Trusts; Wills; Trust Design; Medicaid; Estate Planning; Nursing Home Matters; and Estate Administration. For our clients who own businesses, our team assists them with succession planning for their business in conjunction with their estate planning. We have office locations in York, PA, and Lancaster, PA.We offer FREE workshops! Our workshops are fun and entertaining ways to learn! We provide you with the information to decide what is right for you. If after attending, you decide we arent the right fit no problem! Youll never feel any pressure from our team.