[WSBAPT] IRA Inheritance and Medicaid

[Paul Grant]

Thanks Marcus - we established a d4a trust years ago but somehow we could
not get the family to do all the proper estate planning so here we are!
Thanks for the confirmation that the IRA is a countable asset even for
medical coverage determination.  Unfortunately we will need to cash out and
pay the tax - argh.

Thanks again.


Paul H. Grant - JD, LL.M

Planning with Purpose, Inc
Lynnwood, WA 98036
425-939-9948
www.planningwithpurposeinc.com

Estate Planning. Business Planning. Wealth Succession.

On Mon, Aug 17, 2015 at 1:42 PM, Marcus Fry <mfry at lyon-law.com> wrote:

> 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
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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
>
> Estate Planning. Business Planning. Wealth Succession.
>
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