July 2014 Posts

  • GAO Report Reveals Why People Claim Social Security Benefits Early

    Why would people choose to claim Social Security retirement benefits at the earliest possible age of 62, rather than waiting until their full retirement age (66 to 67 for anyone born in 1943 or later), when doing so would reduce their monthly benefit by as much as 30%? There are many reasons, according to a recent General Accounting Office report titled, "Challenges for Those Claiming Social Security Benefits Early and New Health Coverage Options," including work-related and demographic factors....
  • IRA Rollover Passes House – On To Senate

    On July 17 the IRA rollover and four other charitable bills passed the House on a 277-130 vote. Of the 12 different permanent tax extenders that have moved through the House Ways and Means Committee, 10 have now been passed by the full House of Representatives....
  • Heir Liable for Reimbursement of Mother's Medicaid Expenses

    A California appeals court rules that the heir of an estate who sold her interest in her mother’s house to her brother is liable to the state for reimbursement of her mother’s Medicaid expenses. Estate of Mays (Cal. App., 3d, No. C070568, June 30, 2014)....
  • Transfer of House in Exchange for Promissory Note Is Not Subject to Penalty

    A U.S. district court holds that a Medicaid recipient who transferred his house to his daughter in exchange for a promissory note does not incur a transfer penalty and that the promissory note is not an available asset. Peterson v. Lake (U.S. Dist. Ct., W.D. Okla., No. CIV-13-1235-W, June 30, 2014)....
  • IRAs as Countable Assets for a Community Spouse

    The latest in a line of cases from various states holding that an IRA or other retirement account of a community spouse is not exempt in determining Medicaid eligibility for the institutionalized spouse is Ark. Dep’t of Human Svcs. v. Pierce, 2014 Ark. 251 (May 29, 2014). This is a problem in many states, and it may become a problem in other states which currently exempt spousal retirement accounts but may change their policies in the future....