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<p class="MsoNormal"><a name="_GoBack"></a><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Paul:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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 (<a href="http://www.medicaidannuity.com/you-can-do-that-with-an-ira-3/">http://www.medicaidannuity.com/you-can-do-that-with-an-ira-3/</a>) 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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Lyon, Weigand & Gustafson, P.S.</span><span style="color:#1F497D">
<br>
</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Adoption Attorney*<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">P.O. Box 1689</span><span style="color:#1F497D">
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</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Yakima, Washington 98907</span><span style="color:#1F497D">
<br>
</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Telephone: (509) 248-7220</span><span style="color:#1F497D">
<br>
</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Facsimile: (509) 575-1883</span><span style="color:#1F497D">
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D">NOTICES:<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"> *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.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D">Confidentiality:
</span></b><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D">This e-mail transmission may contain information which is protected by attorney-client, work product and/or other privileges. If you are not the intended recipient, you
are hereby notified that any disclosure, or taking of any action in reliance on the contents, is strictly prohibited. If you have received this transmission in error, please contact us immediately and return the e-mail to us by choosing Reply (or the corresponding
function on your e-mail system) and then deleting the e-mail.</span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Paul Grant<br>
<b>Sent:</b> Monday, August 17, 2015 1:17 PM<br>
<b>To:</b> Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] IRA Inheritance and Medicaid<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">Hi All,<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">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.<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">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).<o:p></o:p></p>
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<p class="MsoNormal">Thank you for any insight and thoughts.<br clear="all">
<o:p></o:p></p>
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<p class="MsoNormal"><br>
Paul H. Grant - JD, LL.M<br>
<br>
Planning with Purpose, Inc<br>
Lynnwood, WA 98036<br>
425-939-9948<br>
<a href="http://www.planningwithpurposeinc.com" target="_blank">www.planningwithpurposeinc.com</a><br>
<br>
Estate Planning. Business Planning. Wealth Succession.<o:p></o:p></p>
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