Are IRAs Considered Countable Assets for Medicaid?
Published: Fri, 04/11/14
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Ask the Expert: Your Elder Law Questions Answered by Evan H. Farr, CELA |
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Are IRAs Considered Countable Assets for Medicaid? If you cannot view the image below, please read the article on our blog.
 Q. My next door neighbor is a retired financial planner. We walk every morning to stay in shape and maintain good health. This morning, I brought up the topic of whether my father's IRA would be countable if he applies for Medicaid. Due to the complexity of Medicaid, she suggested that I ask an experienced Elder Law attorney, so I thought my best first course of action should be to send this question to you. If my father has assets in an IRA, will they be taken into consideration when it comes to Medicaid Planning? If so, how can they be protected?
If your father is age 70 ½ or older, he must take a required minimum distribution each year. If he is taking at least the required distribution out of his plan on a monthly basis, this is referred to in some states as his IRA being in "payout status." If the account is in this so-called "payout status", in a few states (but NOT in Virginia or Maryland) the retirement assets would not be counted by Medicaid, but the monthly payments that he receives would be counted as income. In DC, all money in retirement accounts are exempt from being counted for Medicaid. In most states, including Virginia and Maryland, IRAs and all other retirement accounts with cash value are countable assets, which means the total amount in the account will be counted as an asset affecting Medicaid eligibility. In order to protect retirement accounts in connection with Medicaid, one option is to cash out the retirement account and pay the income tax on it, and then transfer the proceeds to a Living Trust Plus(TM) Asset Protection Trust. After 5 years the funds would not be counted as a resource that he will have to "spend down" under Medicaid eligibility rules. Instead, his money will be protected and can be used for his benefit during his lifetime, and whatever is left can be passed on to his beneficiaries through the trust. The rules regarding IRAs and Medicaid are complicated and vary from state to state. As you can see, finding the best solution for retirement assets demands careful analysis from an experienced Elder Law attorney, preferably a Certified Elder Law Attorney. If your father is nearing the need for nursing home care, or may need nursing home care in the next 5 to ten years, the time for him to plan is now. Call Virginia Elder Law Firm of Evan H. Farr, P.C. today at 703-691-1888 in Fairfax or 540-479-1435 in Fredericksburg to make an appointment for an introductory consultation.   Technology to Help Mom Hear Better
Dear Commander Bun Bun, My 64-year-old wife has some hearing issues, but she doesn't think she needs a hearing aid, so I'm looking for some alternative devices that can help. Since you are the technological pet in the office, what types of amplification products can you recommend to help people with hearing impairment? Don Wanna-Shaudt ---- Dear Don, If your wife is reluctant to get a hearing aid, there are various over-the-counter personal sound amplification products (PSAPs) that are available to help her hear better, typically available at a lower cost than most hearing aids. Many offer the ability to adjust the volume and tone so she can hear better in different situations. PSAPs work best for people with mild to moderate hearing impairment, you don't need a prescription to buy them, and they usually aren't covered by Medicare or other health insurance. Here's a breakdown of some of the different PSAPs that can help: · TV Amplifier: To hear the television better, there are a number of TV listening devices on the market that will let your wife increase the volume and adjust the tone to meet her needs, without blasting out you or the rest of the family. An example is TV Ears 3.0, available on Amazon.com. · Telephone Amplifier: If hearing over the telephone is a problem, a handset or in-line amplifier can be added to your phone for a few dollars, or you can purchase an amplified telephone, such as the Clarity Amplified Phone. Most amplified phones allow you to adjust the volume and tone for better clarity and they usually come with extra loud ringers and flashing ring indicators to alert you when a call is coming in. · Personal Sound Amplifiers: For better hearing in noisy environments, your wife can get a personal sound amplifier that's designed to amplify hard to hear sounds (like voices), while reducing background noise. An example is the Pocketalker Ultra Duo Pack. Before you look into these items, your wife should probably get tested by an audiologist who can rule out any medical issues that could be affecting her hearing like excessive ear wax, an infection, abnormal bone growth, or an inner-ear tumor. Audiologists are also familiar with the different PSAPs and can help your wife choose the best products to meet her needs, or let her know if a hearing aid would be a better option. About Commander Bun Bun Commander Bun Bun is a Holland Lop rabbit that belongs to Grace Everitt, one of our Asset Protection Paralegals at the Farr Law Firm. In the past, Grace used to raise rabbits for pets and show in Florida, and Commander Bun Bun was the runt of her last litter. As a baby, Commander Bun Bun's mother accidentally bit off her tail and then stopped feeding her. After being hand-reared by Grace, she is now a completely happy and healthy little bunny. Commander Bun Bun loves to be held like a baby and to have her tummy rubbed. You can often find her resting under Gracie's printer table. She enjoys all of the attention (and, of course treats) she gets from staff and friendly clients at the firm. We encourage you to visit us and meet her and our other extraordinary critters! |
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