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.
Connect with Bellomo & Associates on Social Media
Twitter: https://twitter.com/bellomoassoc
YouTube: https://www.youtube.com/user/BellomoAssociates
Facebook: https://www.facebook.com/bellomoassociates
Instagram: https://www.instagram.com/bellomoassociates/
LinkedIn: https://www.linkedin.com/in/bellomoandassociates
When someone calls Bellomo & Associates looking for information for the first time, they speak with Intake Specialist Jacob Sherman. Jacobs passion for helping others, especially during a tough time, is evident from the start. As a provider of what Jeff calls, service extraordinaire, Jacob ensures that a persons initial interaction with Bellomo is helpful and positive. Jacob applies that same level of commitment to his work as a health coach. Jacob introduced Jeff to OPTAVIA, the program of healthy habits that Jeff has used to lose 100 pounds. Both men have had life-changing success with the program. This discussion of their journeys back to health is truly inspiring.Learn more about OPTAVIA at https://www.optavia.com/ Apple: https://podcasts.apple.com/us/podcast/finding-hope-in-loss-meet-jacob-sherman/id1634278675?i=1000633436555 YouTube: https://youtu.be/gRX7g5KgJfo Spotify: https://open.spotify.com/episode/7mZUon8zLh3kQ5sV3syum6?si=Y6YL8zsbQeCpjcWUV7pPzQ
Jeff reflects on his many years as an attorney and shares the advice he would give himself as a young lawyer. As it turns out, his advice consists of universal truths: think differently; keep learning and growing; be clear, consistent, and honest in your communications; accept that people need to make their own decisions in their own time; nurture and value your relationships; and, most of all, cherish your loved ones and tell them how you feel. Apple: https://podcasts.apple.com/us/podcast/reflecting-on-universal-truths-jeffs-advice-to-his/id1634278675?i=1000632666319 YouTube: https://youtu.be/O3LeJuvnnr4 Spotify: https://open.spotify.com/episode/2C2Xh0q5o6BhtWTK7cYKtO?si=F6k6_r8dTzaXAdKvnQjsGg
Episode 64: Dont Gamble with Your Legacy: Choosing the Right Professionals for Elder Law and Estate Planning Jeff answers another set of commonly asked questions in this last part of our series. But keep your questions coming! Along with guest interviews and deep dives into special topics, we will continue to address your questions periodically. And, of course, were happy to assist you in our workshops, meetings, and all of the ways we interact. Apple: https://podcasts.apple.com/us/podcast/dont-gamble-with-your-legacy-choosing-the/id1634278675?i=1000631821067 YouTube: https://youtu.be/ftFVvtreyMw Spotify: https://open.spotify.com/episode/6mZanpnQgggg8F5Cwo4HDX?si=uQOIDttpTAmi6tyMLg4VWQ