Estate Planning Bits

Why do I need a Will? I thought I was avoiding probate.

Massachusetts writes a will for everybody, so you might as well make sure that your assets pass on as you intend. In this video, Hyman G. Darling, Esq. explains why you need a will even if you think you have effectively planned to avoid probate: [email protected], 413.781.0560

2010 Elder law numbers

Normally January 1st is the time when all of the calculations and numbers for financial issues, including taxes, are adjusted. Most years, numbers increase based on inflation, but 2009 was a year that maintained inflation to such a low extent that many of the normal adjustments were not made in the year 2010. 

One of the important numbers is the calculation of the maximum amount allowed in many states by the center for Medicare and Medicaid services. This amount for the community spouse remains at $109,560.00, as it has not increased from the prior year. Likewise, the amount that the institutionalized spouse is allowed to have as a maximum before qualifying for Medicaid eligibility remains at $2,000.00. The minimum spousal allowance that a person may have living in the community also remains the same, at $21,912.00 in 2010. 

Another important calculation is the monthly maintenance needs allowance or MMMNA. This amount normally changes July 1st of each year. This amount remains at $1,821.25 at this time. It remains to be seen as to whether this amount will increase in July of 2010. The calculation of this amount is important, as it determines the income that the community spouse may keep if their spouse is institutionalized. In many cases, the at-home spouse or community spouse has nominal income based on their earnings, and they are permitted to maintain additional income, which is allocated to them from their institutionalized spouse’s income. They remain at basically a poverty level. There is also a standard utility allowance of $546.38, which remains the same in the first half of 2010. Actually, if there are other dependent members of the family living in the same household, these numbers may increase based on the number of dependents. 

The annual gift exclusion also remains at $13,000.0. This is the amount that each person may gift to as many different individuals in a single year as desired. The donees need not be family members, but it is worth repeating that this amount is for gift tax purposes only and is not related to Medicaid issues. A gift of $13,000.00 will still carry with it a disqualification period of 5-years for Medicaid eligibility, but is exempt from tax. 

Social Security figures also have not changed in 2010 due to the low inflation rate. It is estimated that the average monthly Social Security benefit payment is approximately $1,153.00 per month. In addition, taxable earnings, which determine how much Social Security payments are withheld, remains at $106,800.00. The maximum Social Security benefit remains at $2,323.00 per month. Also, the Supplemental Security Income, or SSI, federal payment standard will not increase and remains at $674.00 per month for an individual and $1,011.00 for a couple. 

The good news is that the Medicaid Part B enrollees will also not have an increase in their premium in 2010. Many people are disappointed that the amount of their checks will not increase in 2010, since the lagging economy has kept prices down, but their buying power remains approximately the same. 

Hyman G. Darling, Esq.

Hyman Darling discusses divorce as a last resort to pay medical bills on The Today Show.

Divorcing to pay medical bills: Attorney, Hyman Darling discusses an emotional last resort for some couples on the Today Show, March 13, 2010.

 

Estate tax - why many say 2010 is the year to die

2010 is the year in which no federal estate tax is due, so many call this the year to die. Attorney, Hyman Darling explains it all in this video:

by Hyman G. Darling, Esq.