One of the primary concerns clients have about Medi-Cal eligibility deals with previously transferred assets. In many cases, clients have already taken some bad advice and given away their assets in anticipation of applying for Medi-Cal benefits. However, as Medi-Cal planning lawyers understand, there are still options even for your previously transferred assets. Here is [ ] The post How Can Medi-Cal Planning Save Previously Transferred Assets? appeared first on Northern California Center for Estate Planning and Elder Law.
Whether you have a child with special needs or you have a parent dealing with health-related disabilities, disability planning is something you should definitely consider. Regardless of where you child or parent may fall on the disability spectrum, you will want to ensure that your loved one has sufficient resources to be well-cared for in the future, without jeopardizing their eligibility for government benefits. Here are a few things to remember about disability planning. Why Is Disability Planning a Necessity? One of the primary issues that individuals with disabilities face is protecting their eligibility for valuable government benefits. Receiving gifts from parents or children can place those benefits in jeopardy if you are not careful. Many state and federal assistance programs, like Medi-Cal and Supplement Security Income (SSI), are needs-based programs. That means if you have too many assets, you may no longer qualify. However, by incorporating disability planning
Saving for college and saving on taxes can be accomplished thanks to Education Savings Accounts, commonly referred to as 529 plans. The number refers to the section of the Internal Revenue Code which authorizes these accounts. As we all know, it is challenging to use gifting as a tax efficiency strategy because of the existence of the federal gift tax. This levy is unified with the estate tax. While there is an exclusion of $5,43 million for the year 2015, it is just one unified exclusion that applies to gifting as well as the value of your estate. To provide clarity by way of example, this means that someone who gave away $5.43 million (currently adjusted for inflation) in taxable gifts throughout his or her life using this exclusion would have nothing left to apply to his or her estate. In addition to the above-noted lifetime exclusion, there also is an annual $14,000 exclusion (adjusted for inflation) that exists outside of the unified exclusion. You can give as much as $14,