[WSBAPT] IRA Inheritance and Medicaid

[Paul Grant]

Thanks Jacob - Medicaid for elderly is an asset/income test but I
understood that all other assistance was only income based.  I think the
IRA annuity option may assist this individual nonetheless so we may look
into that option as suggested on the list - the one fact that I did not
know was if client being on SSDI would have any influence on the correct
option - the last line of your link suggests it does not.

I appreciate your response .... even on vacation!


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 Wed, Aug 19, 2015 at 10:28 AM, Jacob Menashe <jacob at hickmanmenashe.com>
wrote:

> Paul, I think you had it right initially. If your person is on the
> expanded Medicaid through Obamacare the IRA itself, the IRA itself
> shouldn’t be a bar to eligibility – it’s only the income that will matter.
> http://www.hca.wa.gov/hcr/me/Pages/index.aspx.
>
>
>
> On vacation again today, so I won’t see any responses until tomorrow at
> the soonest. J.
>
>
>
> Best,
>
>
>
> Jacob
>
>
>
>
>
> Jacob H. Menashe
>
> Hickman Menashe, PS
>
> 4211 Alderwood Mall Blvd., Suite 202
>
> Lynnwood, WA 98036
>
> (425) 744-5658 phone
>
> (425) 744-6078 fax
>
> Satellite Office in Bellevue
>
> www.hickmanmenashe.com
>
>
>
>
>
>
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *Paul Grant
> *Sent:* Monday, August 17, 2015 4:20 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] IRA Inheritance and Medicaid
>
>
>
> 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
> Telephone:  (509) 248-7220
> Facsimile:  (509) 575-1883
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>
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> 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
>
> Estate Planning. Business Planning. Wealth Succession.
>
>
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