A new Government Accountability Office (GAO) study concludes that few of the elderly are transferring assets in order to become financially eligible for Medicaid coverage of long-term care, and that of the transfers that are made, the amounts are modest. The study also finds that the impact of the Deficit Reduction Act of 2005 (DRA), […]

A U.S. District Court in Ohio finds that an assisted living facility is a long-term care facility under the terms of a long-term care insurance policy, even though the facility did not have a nurse on site 24 hours a day. Hoekenga v. Continental Casualty Company (U.S. Dist. Ct., S.D. Ohio, No. 1:06-cv-458, April 18, […]

One Medicaid planning strategy available for crisis planning is to purchase an endowment contract.  The purchase should not result in a penalty, since the commercially available contract was purchased for fair market value, and should not be counted as a resource since it has no cash value, and pays a death benefit until endowed.  That […]

Planning for tax-qualified plans, which includes IRAs, 401(k)s and qualified retirement plans, requires a careful examination of the potential taxes that impact these assets. Unlike most other assets that receive a "basis step-up" to current fair market value upon the owner’s death, IRAs, 401(k)s and other qualified retirement plans do not step-up to the date-of-death […]

Public Citizen has recently ranked Mississippi’s Medicaid program among the 10 worst in the nation.  For more information see www.citizen.org/medicaid. 

As we age, serious disability is an increasing likelihood. That’s why you should probably plan in advance to have your personal care and financial affairs managed, as you would want should you become disabled. If not, you could find yourself the focus of a Guardianship proceeding ¾ known sometimes as a Conservatorship. In a humiliating […]

Power of Attorney For most people, the durable power of attorney is the most important estate planning instrument available — even more useful than a will. A power of attorney allows a person you appoint — your "attorney-in-fact" — to act in your place for financial purposes when and if you ever become incapacitated.

Anna Nicole Smith seemed to go from one estate planning mess to another. First, she was the wife of billionaire J. Howard Marshall. For many years, she was involved in litigation over his estate because J. Howard never included her in his Will. But, even after experiencing first-hand the emotional, financial, and time costs of […]

This month’s newsletter examines the unique planning requirements of families with children, grandchildren or other family members (such as parents) with special needs. There are many misconceptions in this area that result in costly mistakes in planning for special needs beneficiaries. It is, therefore, incumbent upon us – our clients’ advisors – to ensure that […]

Under Mississippi and Federal law, transfers of assets by an Medicaid applicant within 60 months prior to a Medicaid application will result in a penalty of ineligibility.   Congress does not want you to move into a nursing home on Monday, give all your money to your children (or whomever) on Tuesday, and qualify for Medicaid […]