Save Your Estate

Why should the government or anyone else direct what happens with your estate assets? Why should a court, a stranger, or someone other than your choice make the medical and financial decisions for you if you become sick and incapacitated? Why should anyone other than your spouse, life partner, or the one you choose make the decisions about your illness, hospital visits, your funeral and what happens to your estate?

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Ronald J. Cappuccio, J.D., LL.M.(Tax) is a tax and business attorney practicing since 1976. Ron is a Graduate of Georgetown University, the University of Kansas and the Georgetown University Law Center. He also studied at Exeter University, UK.

Ron protects business and individual taxpayers from IRS Audits, Tax Collections (including bank levies, wage executions) and IRS Appeals. Employee vs. Independent Contractor Issues, Manufacturer, Pharmaceutical and Restaurant and Pizza audits are a special area of emphasis.

Saturday, January 15, 2005

NJ Restrictions against Medicaid Annuities held Invalid

The New Jersey Appellate Division held that a Medicaid annuity should not be counted towards a patient's economic resources in determining Medicaid eligibility. In Estate of F.K. vs. Division the Court held using immediate annuities as an asset protection tool is permitted under federal law and invalidating New Jersey's Medicaid regulations prohibiting such annuities.

In the FK case, the husband entered a nursing home while suffering from Alzheimer's disease. His wife bought an irrevocable, non-assignable immediate annuity for $274,000 tied to the wife's life expectancy. The monthly income from the annuity was payable to the wife. Under federal law, the purchase of the immediate annuity made the husband eligible for Medicaid to cover his nursing home costs. The New Jersey agency denied Medicaid coverage by considering the annuity as the husband's assets. The Court overturned the agency and granted Medicaid eligibility.