[WSBAPT] IRA Inheritance and Medicaid

Thu Aug 20 11:04:08 PDT 2015

I think your response, and mine, highlights the limits of exchanges like this on a  list serve! If a person is on SSDI, and has been on it for two years, then the person would also be on Medicare and thus couldn’t get Medicaid through the Obamacare Medicaid expansion. Thus making the IRA again a resource issue! There could be other twists involved too. Please take this all with a grain of salt.

Best,

Jacob

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Grant
Sent: Wednesday, August 19, 2015 11:17 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] IRA Inheritance and Medicaid

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<http://www.planningwithpurposeinc.com>

Estate Planning. Business Planning. Wealth Succession.

On Wed, Aug 19, 2015 at 10:28 AM, Jacob Menashe <jacob at hickmanmenashe.com<mailto: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. ☺.

Best,

Jacob

Jacob H. Menashe
Hickman Menashe, PS
4211 Alderwood Mall Blvd., Suite 202
Lynnwood, WA 98036
(425) 744-5658<tel:%28425%29%20744-5658> phone
(425) 744-6078<tel:%28425%29%20744-6078> fax
Satellite Office in Bellevue
www.hickmanmenashe.com<http://www.hickmanmenashe.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto: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<mailto: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<tel:425-939-9948>
www.planningwithpurposeinc.com<http://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<mailto: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<tel:%28509%29%20248-7220>
Facsimile:  (509) 575-1883<tel:%28509%29%20575-1883>

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> [mailto: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<tel:425-939-9948>
www.planningwithpurposeinc.com<http://www.planningwithpurposeinc.com>

Estate Planning. Business Planning. Wealth Succession.

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