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<p class="MsoNormal"><span style="font-size:12.0pt">Yes. When you apply for a policy through the exchange there is a household income question and then you have to back it up with tax returns or other income proof.
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<p class="MsoNormal"><span style="font-size:12.0pt">Jane.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Jane G. Bitz <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Of Counsel <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Wolff, Hislop & Crockett, PLLC <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">12209 E. Mission Ave, Suite 5 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Spokane Valley, WA 99206-4824 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">(509) 927-9700 x126 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">FAX: (509) 777-1800 <o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Diane J. Kiepe<br>
<b>Sent:</b> Thursday, July 27, 2023 3:09 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Trusts and Friend-Educated Clients<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Jane nailed it much better than I! Thanks Jane, I was going off the cuff and couldn’t remember the ins and outs. Also, and new to learn, I did not realize pulling from
a base asset (in your case the 200K) doesn’t count for health insurance coverage – just an income test – did I read that correctly?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><i><span style="font-family:"Script MT Bold";mso-ligatures:none"><o:p> </o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold";mso-ligatures:none">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Douglas Eden, P.S.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">717 W. Sprague Ave., Suite 1500<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Spokane, WA 99201<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><a href="mailto:djkiepe@depdslaw.com">djkiepe@depdslaw.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">509-455-5300<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;mso-ligatures:none">KINDLY ALLOW 2-4 WORKING DAYS TO RECEIVE A RESPONSE TO NON-URGENT EMAILS. FEEL FREE TO SEND YOUR EMAIL (OR RESEND YOUR EMAIL AS THE CASE MAY BE) MARKED URGENT IN THE
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black;mso-ligatures:none">DISCLAIMER: the preceding message and any attachments may contain confidential information protected by law, the attorney-client privilege or other privilege. This communication
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Jane Bitz<br>
<b>Sent:</b> Thursday, July 27, 2023 2:22 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] Trusts and Friend-Educated Clients<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt">In law school on the first day of Income Tax class, my professor (who was Kit Querna, a wonderful attorney in Spokane who has since passed away) wrote the “first rule of tax” on the board in capital letters:
PIGS GET SLAUGHTERED<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Elder Law attorney answer:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">No “trust for all assets” is needed IF they are talking about health insurance coverage only and not “institutional Medicaid” for long term care.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">IF they are talking about medical insurance. They can apply for Obama Care (Medicaid medical benefits) and their assets are not counted toward eligibility, just income.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Example: I have a client who was always low income, but inherited a nice amount (about $200K) from her mom’s estate. The money was invested and she applied for and receives medical insurance through the Washington
“exchange”. Her provider is Molina and she pays no premiums because she is “low income” – only the interest, dividends and capital gain on her investments are counted for eligibility for “Obama Care” insurance coverage. She takes a monthly draw from her inheritance
fund as her income.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Your clients probably have so much in passive income that they will end up with paying a premium for their coverage.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">As Diane said: some people believe or are told that they can transfer assets into an irrevocable MAPT (Medicaid Asset Protection Trust) and then later qualify for Medicaid assistance in paying for long term
care (assisted living, memory care, nursing home, etc.). The problem is that there is a 5 year look back on gifting. If they need care before 5 years have passed, there is a gifting “penalty” that is applied forward, from the date of the application.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">In addition, many facilities are requiring 24 to 36 months of private pay before Medicaid can become a payment source because Medicaid reimbursement rates have not kept up with costs at those facilities. The
facilities also limit the number of “Medicaid beds” because of this issue.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Jane.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Jane G. Bitz <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Of Counsel <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Wolff, Hislop & Crockett, PLLC <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">12209 E. Mission Ave, Suite 5 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">Spokane Valley, WA 99206-4824 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">(509) 927-9700 x126 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none">FAX: (509) 777-1800 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black;mso-ligatures:none"> <o:p></o:p></span></p>
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Any review, use, distribution or disclosure by others is strictly prohibited. <u>
If you have received this electronic mail in error</u>, <b>PLEASE NOTIFY ME BY E-MAIL, FAX OR TELEPHONE and PROMPTLY DELETE</b> this electronic mail. This mail cannot be modified without express written consent of Wolff, Hislop & Crockett, PLLC. Thank You. </span></i><span style="color:black;mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Paul Neumiller<br>
<b>Sent:</b> Thursday, July 27, 2023 1:53 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] Trusts and Friend-Educated Clients<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">By the way, the couple is healthy, happy, and in their mid-50s. Estate size of around $5 million.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> Paul Neumiller
<br>
<b>Sent:</b> Thursday, July 27, 2023 12:55 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Trusts and Friend-Educated Clients<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">This was a new one for me so I thought I’d bounce it off the hive-mind. New estate planning clients have insisted they need a WA trust because the trust would make their
Obama Care expenses free. They say that their “good and very knowledgeable” friends told them that they set up a WA trust and now they qualify to get all medical expenses for free. Any ideas?
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
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