Our time with our daughter, Theresa, was precious.
As it should be for all parents.
Several little-noticed provisions of the recently-enacted law that extended the Bush-era tax cuts fundamentally alter how the Medicaid and Supplemental Security Income (SSI) programs treat tax refunds and other tax credits, making it easier for people with special needs to maintain their benefits.
Under the new law, tax refunds are no longer considered countable income for Medicaid or SSI purposes. Furthermore, any money received through a tax refund will not be a countable resource for 12 months following receipt of the funds, and SSI and Medicaid recipients will be under no obligation to segregate the funds from their other resources (SSI recipients can only keep $2,000 of resources and still qualify for benefits). Because of the change in the law, an SSI beneficiary can now retain his tax refund, even if it puts him over the $2,000 resource limit, for up to one year from the date of receipt, which is welcome news for beneficiaries who usually have to count every penny in order to avoid a disruptive loss of benefits.
The new law also changes the treatment of several other important tax credits. Under previous rules, Making Work Pay, Earned Income, Advanced Earned Income, and Child Tax Credits were all excluded as countable income for Medicaid and SSI purposes, but if the income was retained, it had to be spent within nine months of receipt. Now, the 12-month rule applies to all of these tax credits and, furthermore, First-Time Homebuyer Tax Credits that were previously countable as income and as a resource are now exempt and subject to the same countability rules as the other tax credits.
In one more piece of good news, the law applies to any refunds or credits received after December 31, 2009, which means that, in limited cases, applicants who were initially denied SSI or Medicaid benefits due to receipt of a tax refund or credit may actually be retroactively eligible for benefits. The Centers of Medicare and Medicaid Services have also indicated that seniors and other people seeking Medicaid coverage for long-term care will not be subject to transfer-of-asset penalties if they give away their tax refunds or credits during the 12-month grace period.
Family Comes First 2010 Fall Season
The moment has arrived.....
The Fall 2010 Season of Family Comes First™ Exclusively on Telecare TV
Cablevision, Channel 29 and 137 / Verizon FiOS TV, Channel 296
Family Comes First 2010 Fall Season
The moment has arrived.....
The Fall 2010 Season of Family Comes First™ Exclusively on Telecare TV
Cablevision, Channel 29 and 137 / Verizon FiOS TV, Channel 296
A Break Thru - On Reverse Mortgages
Seniors want to live at home and independently and why not? In our experience, the most important and valuable asset is one's home. So, how does one protect the home while also accessing Medicaid for long term care and a Reverse Mortgage for living expenses?
Ask The Expert
Thanks to Lynn Brenner of Newsday for her column, Ask the Expert. On November 5, 2010, she responded to a question regarding how to protect mom's home if mom needs Medicaid nursing home care. The daughter informed Ms. Brenner that her mother is 93 years of age, in failing health and her daughter has lived in mom's house since 1995.
Let’s circle back to my first article in this four-part series, What Every Parent Who Has A Child with Special Needs Should Know About Estate Planning - the flood of emotions, the questions.
You know the meaning of “milestones” - first birthday, becoming a teenager, entering adulthood. Now, your “child” has turned 21. You may not be legally responsible for your child, however “legal” responsibility was never your motivation in the first place. Yes, adulthood is here, however the care required for your special needs child continues. You are not alone in your journey. Continued planning is the key.