As of 2014 the IRS permits an annual exclusion amount from gift tax of $14,000 per person. This is the amount that can be gifted annually per individual without any gift tax due. The deduction allowed for long term care insurance premiums has changed. For example, an individual aged 51 – 60 can deduct up to $1,400.00 as a medical expense, if these expenses exceed 7.5% of the taxpayer’s adjusted gross income.
In the Medicaid category, there are 2 important changes effective January 1, 2014. The community spouse of a Medicaid recipient in a nursing home may keep up to $117,240.00 in assets without causing the spouse in the nursing home to lose Medicaid coverage. Meanwhile, the community spouse will be permitted to keep up to $2,931.00 per month in income. This is called the maximum monthly maintenance needs allowance.
It would be my pleasure to discuss any questions you have or to provide additional information. Contact me at (914) 328-1222.
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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. I invite you to contact me and welcome your calls, letters and electronic mail. Contacting me does not create an attorney-client relationship. Please do not send any confidential information until an attorney-client relationship has been established.
Robert W. Shaw is licensed in New York.
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