Cincinnati Tax Problem Attorney Blog

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.

On July 26, 1990, President George H. W. Bush signed what he declared to be "the first comprehensive declaration of equality for people with disabilities." He further called for the destruction of "The Shameful Wall of Exclusion."

Since that day, there have been many court decisions interpreting the Americans with Disabilities Act. Some of these decisions, and particularly some decisions of the Supreme Court, narrowed the scope of the law intended by Congress when it passed the ADA. This led to Congress passing the ADA Amendments Act of 2008 that President George W. Bush signed on September 25, 2008.

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

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

Failure to keep beneficiary designations up-to-date can be a very costly mistake. Most people have some life insurance, retirement accounts, IRAs, and other contracts that designate a recipient or beneficiary. When the primary beneficiary becomes disabled, enters a nursing home, or dies, the owner of these contracts frequently fails to update the beneficiary designation. This can cause problems with probate, estate taxes, especially state estate taxes, and inheritances.

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

Continue reading "Elder Law -- Keep Beneficiary Designations Up-to-Date" »

This entry is not what one would expect on a blog by a tax attorney, but the loss of Dr. Stanley Greenspan is quite sad news. Dr. Greenspan's specialty as a psychiatrist was working with infants to seven year-olds who had been diagnosed with autism. Much to my wife's and my chagrin, we did not take our son to see Dr. Greenspan until our son was "too old." What if . . . ? is one of the many paths parents of children with autism and other severe disabilities cannot allow themselves to travel.

Dr, Greenspan left behind a great body of work that many will still be able to take advantage of, but his loss is a great tragedy. He will be greatly missed. Tribute.

Most people are aware of typical estate planning concepts, including the use of living trusts to avoid the expense and complications of probate. Fewer people are aware of the considerable need for estate planning for families with individuals who have disabilities, such as autism or down syndrome or any other disability that makes it likely the individual will qualify for government benefits because of his or her disability.

Another social security program that provides benefits to individuals with disabilities is "Disabled Adult Children." To qualify for this benefit, one must have a disability with an onset before age 22, and at least one of the individual's parents is already receiving social security benefits. This benefit can provide more financial assistance than SSI, and after receiving benefits for two years, the individual qualifies for Medicare, irrespective of age.

Continue reading "Special Needs Trusts -- Estate Planning is Not Just For The Wealthy" »