CHANGES IN THE LAW
As laws are passed or amended that affect our clients, we will be posting notice of some important changes in this section of our web site.
POST DIVORCE ESTATE PLANNING
Chapter 173 of the New York State Laws of 2008 revokes an individual’s prior designation of a former spouse a beneficiary of certain death benefits upon the entry of a final judgment or decree of divorce, annulment or judicial separation. Chapter 173 does not apply to designations that are irrevocable by law such as the beneficiary designation of a joint and survivor retirement option or designations that are required under a certified domestic relations order on file with the retirement plan administrator.
MEDICAID FINANCIAL ELIGIBILITY AS OF FEBRUARY 8, 2006
PURSUANT TO THE DEFICIT REDUCTION ACT OF 2005
1. The look back (audit period) for gifts has been extended from three years to five years and will be phased in beginning in February 2009 when 37 months of financial statements will be required as part of the Medicaid application. The number of months will increase through January 2011 when 60 months of financial statements will be required to be submitted with the Medicaid application.
2. Medicaid transfer penalties for gifts made within the look back period do not begin until the Medicaid applicant is financially eligible to receive Medicaid ($1,600.00 or less of assets for Connecticut residents and $13,050.00 for New York residents) and the applicant is residing in a nursing home.
3. With only two exceptions, the state in which the Medicaid applicant resides must be named as the beneficiary of annuities purchased by the Medicaid applicant or his or her spouse.
4. The Medicaid applicant and his spouse can have no more than $750,000.00 of equity in their home.
5. New York and Connecticut Medicaid eligibility factors differ.
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NEW YORK 2009
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CONNECTICUT 2009
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1. Transfer penalties for home care
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No
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Yes
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2. Spousal refusal to pay for long-term care of spouse
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Yes
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Yes, but VERY LIMITED
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3. Medicaid eligibility asset limit
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$13,800.00
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$1,600.00
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4. Irrevocable prepaid funeral contract with limit on non-burial space items
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No limit on non-burial space item costs
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$5,400.00 limit
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5. Retirement accounts and payout status are required minimum distributions
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Only the required minimum distribution amount is counted as an available asset
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The retirement account must be cashed in and spent down until the applicant only has $1,600.00.
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6. The asset amount that the well spouse is allowed to keep
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$109,560.00 without a fair hearing
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One half the assets up to $109,560.00 without a fair hearing
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