Cincinnati Tax Problem Attorney Blog

Most states provide people 65 and older with a reduction on their property tax bills called a homestead exemption. Frequently, this tax reduction is also given to people with disabilities who own their own homes, veterans, and others. The reduction usually must be applied for, and the application period typically begins in January and runs through April. Some application periods run through the first Monday in June, as is the case in Ohio.

Paul A. Nidich
http://paulnidich.webs.com/

The Senate finally passed a test vote that will allow increased Medicaid funding for the first half of 2011 to pass Congress after the House returns from its August recess. GOP Senators Susan Collins and Olympia Snowe, both from Maine, joined Senate Democrats to end debate on the legislation that will provide states with billions of dollars to shore up their Medicaid programs and prevent layoffs and program cuts.

A recent news story has reported a trend that could be costly to life insurance beneficiaries and could risk the stability of the financial system. In order to retain the assets of life insurance proceeds, some insurance companies send checkbooks to beneficiaries, instead of the insurance proceeds. These checkbooks are tied to investment accounts from which the insurance company profits, are not insured by the federal government, and could upset an already unsteady financial system.

Since these investment accounts are not insured by the federal government, something that may not be known or understood by the beneficiary, the beneficiary is at risk of losing the whole proceeds if the insurance company goes under. Further, if enough beneficiaries decide to demand all of their money at the same time, the life insurance company may not be able to meet the demand, causing the kind of "run on the bank" government insurance and regulation is intended to prevent.

Continue reading "Elder Law -- Life Insurers Give Beneficiaries Checkbooks Not Insurance Proceeds" »

In a letter to a member of Congress, the Internal Revenue Service recently re-iterated its position that the costs related to buying, training, and maintaining a service animal may be a deductible medical expense for a taxpayer. The tests regarding the deductibility of expenses for service animals are not different from other expenses that qualify for medical expense deduction.

Paul A. Nidich
http://paulnidich.webs.com/

I had a new client come to my office recently. She was looking for Medicaid planning advice for her husband's parents. (This is a very frequent occurrence.) Her mother-in-law was suffering from dementia but was still able to live at home. Her father-in-law was 85 years old but in good health and led a fairly active life.

I explained that Medicaid had a five-year look-back period on transfers of assets for less than fair market value. I suggested that her in-laws might want to have a new irrevocable trust drafted. We also discussed the possibility of an irrevocable grantor trust, a special type of irrevocable trust that causes income to the trust to be taxed to the individual's personal return, rather than taxed at the higher trust rates.

Continue reading "Elder Law -- Is Avoiding Probate Enough?" »

The Department of Health and Human Services has created a web site to help people search out information about the new health care reform legislation. Health Care There is a lot of misinformation about the new law, some of which goes into effect this year.

Paul A. Nidich
http://paulnidich.com

The National Center for State Courts has created a web site called the Center for Elders and the Courts. This site provides useful information about the following topics: "Aging Issues," "Guardianship," "Elder Abuse," and "State Laws."

Paul A. Nidich
http://paulnidich.webs.com