[WSBAPT] IRA Inheritance and Medicaid

[Marcus Fry]

Paul:
In WA, they count the principal amount of the IRA (ID would treat it is as exempt if in payout) as a resource so you are out of luck.  You may be able to convert the IRA to a Medicaid qualified annuity (http://www.medicaidannuity.com/you-can-do-that-with-an-ira-3/)   Your other option referenced below (cash out) is also available and with the ability to fund a d4A trust with the money because of her age that may be the wisest course of action.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Adoption Attorney*
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

NOTICES:
 *Adoption Attorney reflects election as a Fellow of the American Academy of Adoption Attorneys, an invitation based organization of 300+ attorneys nationwide, under its criteria of experience, ethics and peer recommendation. Washington's Supreme Court has not yet developed or recognized a credentialing process for specialties, and certification/fellowship is not required to practice law in this state.
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Grant
Sent: Monday, August 17, 2015 1:17 PM
To: Probate & Trust Listserv
Subject: [WSBAPT] IRA Inheritance and Medicaid

Hi All,
I have a client who is currently receiving highly discounted medical assistance since she has minimal income (through Obama Care).  She recently inherited an IRA and I have searched the WAC (for way too long) to try and determine if a stretch-IRA asset will disqualify - I don't think so as it should be income dependent.  I fully realize that the RMDs will count as income each year, but those can be controlled.  Client is not elderly (in 40's) so I do not see that a spend down is required; she is deemed disabled w SSDI.
Am I missing anything in assessing this issue?  I am trying to make sure that taking a stretch will not interrupt her medical assistance other than her future RMDs.  Other option is to cash out and take the one-time income hit but it is more beneficial to use the stretch (not a massive IRA).
Thank you for any insight and thoughts.

Paul H. Grant - JD, LL.M

Planning with Purpose, Inc
Lynnwood, WA 98036
425-939-9948
www.planningwithpurposeinc.com<http://www.planningwithpurposeinc.com>

Estate Planning. Business Planning. Wealth Succession.
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