Wednesday, January 14, 2009

Less Estates to be Taxed in 2009

In an article in The Wall Street Journal from January 7, 2009, new tax cuts proposed by President-elect Barack Obama were outlined that provide likely benefits to many estate planners.

Beginning the first of the year, the federal estate-tax exemption increased $1.5 million from 2008, to $3.5 million.

This is likely to benefit many estate planners in 2009 because the number of estates subject to the tax is expected to decline AND larger estates affected will likely receive significant tax savings.

Stayed tuned to our blog for more updates impacting your long-term financial planning.

Monday, January 12, 2009

New Numbers for 2009 have been released regarding Medicaid qualification.

Medicaid: Community Spouse Resource Allowance is $109, 560.

Income Cap. is $2, 022. Beyond that level of income for the applicant, a Qualified Income Trust must be done.

Gift Taxes: Annual exemption has increased from $12, 000 to $13, 000. This has nothing to do with gifts for Medicaid purposes where all gifts made can create a penalty period.

Medicare Premiums: The premium remains the same as the previous year at $96.40.

Food Stamps: Assets not in excess of $2000 and income of less than $1, 127 to qualify.

We can help you understand how you might be able to qualify for Medicaid so contact our offices with any questions.