If you are married, and you or your spouse has been in the hospital and/or rehab and/or nursing home for more than 30 consecutive days, you may already be in a Medicaid spend-down for long term care coverage.  And you don’t even realize it!

Let’s start with a discussion of the amount of savings or assets that the “well spouse” can keep when the “ill spouse” asks Medicaid to pay for his or her long term care.  By savings or assets, I mean what is left at the end of the month after income is received and bills are paid.  Medicaid labels savings and other assets as “resources.”  The amount of resources that the “well spouse” can keep at the time the “ill spouse” gets Medicaid coverage is called the Community Spouse Resource Allowance, commonly abbreviated to CSRA.

For most couples, the CSRA is half of the assets at the time the “ill spouse” had to move out of the house for medical reasons and stayed out of the house for 30 days or more.  The first day of the month during which the “ill spouse” moved out is called the “snapshot date.”  (That’s not the official terminology, but I like that term because it’s the most descriptive of what happens.)

Please realize that, on the “snapshot date,” the “ill spouse” is almost always still at home and may not realize that, before the month is over, he or she will be out of the house for medical care and/or custodial care for an extended period of time.  (The “ill spouse” is out of the house on the “snapshot date” only if the “ill spouse” becomes ill or gets injured on that first day of the month.)  The “snapshot date” on the first day of the month seems illogical because, most of the time, nothing medical happens on that day.  It’s logical only when you realize that Medicaid works in whole months.  It’s just too difficult to break financial records down into individual days.

If the couple had less than $47,688 on the “snapshot date,” the “well spouse” will be allowed to keep more than half of the resources because the “well spouse” is allowed to keep the first $23,844 of resources as the minimum CSRA.  (Unfortunately, if the couple has less than $23,844, Medicaid will not give money to the “well spouse” to bring him or her up to the minimum.)

If the couple has more than $238,440 in resources, the “well spouse” will not be able to keep a full half because the maximum CSRA is $119,220.  Any resources above the “well spouse’s” $119,220 will be attributed to the “ill spouse.”

Note:  The minimum and maximum CSRA are adjusted each year for inflation (if there is inflation.)  The Medicaid page at ProtectingSeniors.com is updated from time to time with these amounts and other related Medicaid eligibility figures.

If the couple has between $47,688 and $238,440, the CSRA is half of the resources.

Note:  Some assets, most notably the couple’s home, are not counted in “resources.”

So, after all that, the “ill spouse’s” resources at the time he or she asks Medicaid for help is the couple’s total resources above the CSRA (that the “well spouse” gets to keep) and the $1,500 that the “ill spouse” gets to keep (expected to become $2,000 in July 2016.)  All of the couple’s resources above the CSRA plus $1,500 must be spent-down before Medicaid will cover the “ill spouse’s” expenses for long term care.

So, why does all this minutia mean that someone might already be in a spend-down.  It matters because the “snapshot date” isn’t tied to long term care.  It’s tied only to the “ill spouse’s” absence from the home for medical reasons for at least 30 days.  The “snapshot date” from an injury or illness earlier in life (but still during the marriage) may be useful to save assets if the “ill spouse” later needs long term care.

I know, you’re still confused.  That last paragraph didn’t help, did it?  (Some people would describe that as a good lawyer’s answer:  entirely correct but completely incomprehensible.)  So, let’s tell this with a story.

For the rest of this discussion, I’m going to give names to the “ill spouse” and the “well spouse” in hopes of keeping further confusion to a minimum.  So, the “ill spouse” is going to be Ward, and the “well spouse” is going to be June.

Ward dropped a cleaver (sorry, couldn’t resist) on his foot 10 year ago, on January 6.  He needed surgery and several weeks of rehab.  He returned home on February 5 .  (As long as he was out for 30 days, additional days don’t matter for this discussion.)  Let’s say that Ward and June had $100,000 in resources on January 1 ten years ago (the “snapshot date” for his foot injury.)

Ward recovered and returned to work.  He continued to make money, and their savings grew.

So, now, 10 years later, Ward has a debilitating stroke.  June can’t take care of him by herself and needs to move Ward into a nursing home.  (By the way, this scenario also applies to home care and to assisted living.)  June would like to apply for Medicaid to help pay for Ward’s care.  At the time of Ward’s stroke, they have $200,000 in resources (on the first of the month.)
Based on the $200,000 in current resources, Ward would have to spend-down $98,500 (the amount left after half of $200,000 is reserved for June and $1,500 is reserved for Ward) before Medicaid will pay for Ward’s care.

BUT, Ward has already had a “snapshot date.”  Ten years ago, he was out of the house for medical reasons for at least 30 days.  At that time, he and June has $100,000 in countable resources.  As a result, Ward needs to spend down only $48,500 to get Medicaid coverage to pay for his nursing home stay after the stroke.  June was allowed to keep $150,000 rather than $100,000.  BIG DIFFERENCE.

Note:  The “snapshot date” resulting from Ward’s cleaver accident applies only to Ward’s future need for long term care.  If June, rather than Ward, has the stroke, the earlier “snapshot date” doesn’t apply.  Now, if June had a significant illness or injury of her own that resulted in her own medical stay out of the house for at least 30 days at some point in the past, that would create her own snapshot date.

So, if you’ve stuck with me during this 1,000 word shaggy dog story, here’s the payoff:

If you know a couple (maybe you and your spouse) in which one of them has had a 30 day stay out of the house for medical reasons, the couple should preserve all of their financial records from that time. (For example, bank statements, investment statements, real estate values, IRA statements, life insurance cash values, and annuity statements.)  Those records might be very valuable in case the same person needs long term care in the future.
​
Boy, that installment was about as difficult to follow as War and Peace.  Sorry about that.  I couldn’t find a way to make it any simpler.

For the original article, please visit Protecting Senior News

FORMING AND DOCUMENTING AN EMPLOYMENT RELATIONSHIP
At the outset of the employment relationship, startup business owners must determine the terms and conditions on which they will hire and employ individuals. Specifically, employers have to decide issues such as:

• „„Whether an individual being hired is an employee or retained as an independent contractor.
• „„Whether the employee will be employed on an at-will basis, or will enter into an employment contract for a fixed term.
• „„What types of screening methods will be used.
• „„How the employee will be compensated.
• „„What types of agreements they will ask employees to sign to protect employers’ intellectual property.

Startups without formal employment policies should make sure that any employee policy communication reaffirms the at-will relationship and disclaims the intent to form any contract that is inconsistent with an at-will relationship.

RISKS IN THE HIRING AND INTERVIEW PROCESS
Employers, including startups, face potential liability risks in the hiring process. Key areas of exposure include:

• „„Discrimination and retaliation claims based on an applicant’s membership in one or more protected classes under federal, state or local laws.
• „„Hiring an employee who may have stolen trade secrets or confidential information of a prior employer, or does not have the rights to use information being brought to the startup.
• „„Immigration audits and fines.
• „„Wage and hour violations, including the misclassification of employees and independent contractors.
• „„Conducting background checks, including those delving into criminal records and credit history, that may violate state law.
• „„Conducting social media searches of applicants during the hiring process.

WAGE AND HOUR ISSUES
Wage and hour issues can be especially difficult for startups. In the startup environment, most employees work long hours. They also do not necessarily operate within clearly delineated
roles or traditional job titles, often performing the functions of multiple jobs within a given day or week. Compensation may be primarily comprised of stock or equity grants, with little cash
flow available for base wages. Many startups never contemplate paying overtime to their employees, operating under the false assumption that the overtime laws are inapplicable to startups.
Nonetheless, startups remain vulnerable to potential wage and hour liability arising from employee claims and agency audits. Therefore, they should take time to consider wage and
hour compliance as part of their initial business planning and strategy. These concerns become increasingly important as the company’s workforce expands, or as the business positions itself for additional rounds of financing, a public offering or an acquisition. Key considerations include:

• „„Determining how payroll will be administered.
• „„Properly classifying workers as exempt or nonexempt.
• „„Complying with minimum wage and overtime laws.

Entrepreneurs and startup business owners often focus their time and energy on financing the business and developing and marketing their core products or services. As their businesses grow and they hire more employees, complying with the numerous federal, state and local employment laws is not generally of primary concern as they attend to other business demands. However, non-compliance with these laws can pose substantial risks. Determining who will oversee employment and
human resources-related issues, and how to handle them, should be among the key considerations for startups.


EMPLOYMENT-RELATED FILING, REPORTING AND INSURANCE REQUIREMENTS
​
When hiring their first employees, even startups must comply with numerous filing, reporting and insurance requirements. In addition to federal requirements, many states require businesses to report information about their employees. For example,
before hiring any employees, a business owner must:

• „„Obtain a federal Employer Identification Number (EIN) with the Internal Revenue Service (IRS).
• „„Require each new employee to complete and return an IRS Form W-4 designating the appropriate federal tax withholding.
• „„Retain each W-4 for at least four years.

State and local tax authorities typically require similar forms and withholding information. Additionally, most states require some form of employee registration for purposes of tracking child support obligations, state taxes, workers’ compensation and unemployment insurance. Employers should review and comply with the new hire reporting requirements in any state where the business will operate or employ workers.

IMMIGRATION ISSUES AND FORM I-9 COMPLIANCE

The federal Immigration Reform and Control Act of 1986 (IRCA) prohibits:

• „„All employers from hiring or continuing to employ workers who are not legally authorized to work in the US.
• „„Employers with four or more employees from discriminating based on:
  • national origin; or
  • citizenship.

To comply with IRCA, all employers must:

• „„Have each new employee complete Section 1 of Form I-9, an employment eligibility verification form, by the first day of work.
• „„Review original documents presented by the employee to establish identity and employment authorization.
• „„Complete Section 2 of Form I-9, generally within three days of hire.
• „„Retain Form I-9 on file for each current employee for the longer of:
  • three years from the date of hire; or
  • one year after the employment ends.
• „„Make all Form I-9s available for inspection by the US government in the event of a request.
• „„Determine whether the business:
  • operates in a state or an industry which requires the use of the E-Verify system; or
  • should use E-Verify on a voluntary basis.

Employers do not need to file Form I-9s with any federal or state government agency, but must maintain proper records.

EMPLOYMENT-RELATED INSURANCE REQUIREMENTS
In most states, businesses are required to maintain or pay into funds to support insurance to protect their workforce, including:

• „„Workers’ compensation insurance.
• „„Unemployment insurance.
• „„State disability insurance.

These insurance schemes are administered by state law, and apply in all jurisdictions where a business has employees.

Taxes are a growing concern, particular high-net-worth individuals. A great deal of ink has been spilled recently discussing increased awareness of the federal taxes, but what about the state taxes that are paid over time.

Each state maintains its own tax laws to collect income or estate (or inheritance) tax. These different laws may have a significant impact on a taxpayer’s decision to relocate during retirement.

Saving state income tax dollars can help improve cash flow and spending power in a meaningful way during retirement. Saving state estate tax dollars also can help increase the legacy that someone can leave to their family.

As the “baby boom” generation retires, wealth preservation discussions increasingly involve decisions to relocate to another state. A retiree may enjoy nicer weather or a change of scenery, but he or she may enjoy some beneficial tax savings as well.

Income Taxes

Income tax rates vary widely from state to state. Some do not tax income at all (such as Florida, Nevada, South Dakota, Texas, Washington and Wyoming). Other states have tax rates that approach or exceed 10 percent. Some municipalities within states even maintain additional, regional income taxes.
Some states distinguish between taxing wage income as compared to investment income (such as New Hampshire and Tennessee). Still other states distinguish between taxing retirement income as compared to other income.

Within the states that do not tax retirement income, some distinguish among social security benefits, public and private pensions benefits and retirement account distributions when determining exemptions and taxes. It’s a complicated patchwork of jurisdictions and rules, but the accompanying illustration can provide some more clarity.

Estate Taxes

Prior to June of 2001, most states collected estate taxes based on the federal state death tax credit. In other words, they would collect one dollar of estate tax for each dollar of credit allowed on a federal estate tax return.

After June of 2001, Congress changed the estate tax laws significantly over time. These changes ultimately phased out the federal state death tax credit. As a result, the majority of states (29) no longer collect any estate or inheritance taxes. Other states (6), however, still maintain their own inheritance tax system. A couple (2) collect both estate and inheritance taxes. Still other states (13 plus Washington, DC) have “decoupled” from the estate tax system by recognizing a lower estate tax exemption amount than the one available for federal estate tax purposes.

Even though a taxpayer may not be subject to the federal estate tax due to its higher exemption amount, that taxpayer may be subject to a state inheritance or estate tax in light of these changes. Some taxpayers consider changing residency during retirement in part to avoid these estate and inheritance taxes.

Moving Away

Speaking in the broadest terms, there are a couple of options that taxpayers consider when relocating during retirement. Some taxpayers sell their home and relocate to another state. Others purchase another home and share time between their primary and seasonal homes.

The problem with the latter approach usually revolves around two concerns. First, states often define residency differently for tax purposes. Second, the state a taxpayer has left usually will miss those taxpayer dollars (and may still try to collect them if possible).

Many states that are losing tax dollars have increased their audit practices, especially in cases where taxpayers retain some connection to their state. These states may not simply accept a round trip plane ticket to bookmark the dates a taxpayer claims to be absent from that state. They now may review a long list of facts and circumstances to demonstrate a taxpayer’s true intent to make a new home a permanent residence.

Taxpayers must plan carefully when moving from one state to another while retaining more than one home. For this purpose, it’s not only important for a taxpayer to prove he or she has arrived in a new home state; it’s also important for that taxpayer to demonstrate a formal departure from the prior home state. This burden could prove difficult when the taxpayer maintains a home and other ties to the former state for family or social reasons.
​
Failure to plan properly could result in paying more state income taxes than intended. This situation could arise not only because states collect taxes at different rates but also because states don’t necessarily offer credits for taxes paid to another state. In other words, income taxes could be due in more than one state. And, these costs could be surprising and significant. 

Original Source: Wealth Management

December 1, 2015
                      
BISMARCK, N.D. – The North Dakota Department of Human Services’ Division of Vocational Rehabilitation (VR) and the North Dakota State Rehabilitation Council are sponsoring community meetings about workforce services next week in Minot and Fargo. They are inviting employers and business representatives to attend and to share comments and insight into vocational rehabilitation efforts and workforce programs intended to help businesses recruit and retain workers.

• The Business and Employer Meeting in Minot is Tuesday, Dec. 8, from 6 to 8 p.m., Central Time, in the Viking Room at the Grand Hotel, 1505 N. Broadway. 
• The Fargo employer meeting is Thursday, Dec. 10 from 9 to 11 a.m. at the Baymont Inn and Suites’ Woodland East Room, 3333 13th Ave. South.

“Every year, we host community meetings to hear directly from stakeholders interested in workforce needs and the employment of people with disabilities,” said Russ Cusack, VR Division director. “The feedback we collect helps shape our state plan and identify priorities for the upcoming year.”


Cusack said the division wants to hear from employers who have job openings and currently work with VR, as well as employers who need workers and may be less familiar with the division’s services.  VR professionals, he said, can match clients who have the required skills and abilities with job openings.   


“We can also help employers retain their experienced workforce,” Cusack said. “If a business has an employee who is struggling with an injury, illness, or impairment, we can visit with the employer and employee and help them figure out an accommodation. Modifying a workplace is often low-cost and may be as simple as rearranging a work station.” 


During the 2015 Federal Fiscal Year, VR professionals worked with both employers and individuals with disabilities and helped 531 North Dakotans obtain and maintain employment.


Employers can also submit written comments until 5 p.m., on Friday, Dec. 18, 2015. Send comments to Marv Erhardt, Discovery Consulting, 1527 Territory Dr., Bismarck, N.D., 58503 or marverhardt.discovery@midco.net.


The 2013-2014 VR State Plan is online at www.nd.gov/dhs/dvr/policies/state.html. It can also be obtained by calling 701-328-8950, 800-755-2745, or ND Relay TTY
800-366-6888.


General public comment meetings will also be held in Minot on Dec. 8 and in Fargo on Dec. 10. Details are available online at www.nd.gov/dhs/info/publicnotice/2015/10-23-vocational-rehabilitation-state-plan-public-comment-meetings.pdf


Individuals who need accommodations, including auxiliary aids or other services to participate in the meetings, should contact Erhardt at 701-223-1192, or ND Relay TTY 800-366-6888.


North Dakota is a leader in the employment of people with disabilities. VR Division information is available online at www.nd.gov/dhs/dvr/index.html. Local VR Office location information is listed on the Web at www.nd.gov/dhs/dvr/about/regional-contact.html.

For more information, contact public information officers Heather Steffl at 701-328-4933 or LuWanna Lawrence at 701-328-1892.

If you're a business owner who is co-mingling your finances, you're not alone. But this practice is risky, causing problems at both the operational and the fiscal level.
original source: ​

You’ve worked hard to build your business and you’re thinking, what’s next? If selling your business is in your future, know that preparing for a successful sale can be a long-term process. To maximize the value of your business, you’ll need to plan and prepare well in advance.  The attached PDF by Dan Wright provides a guide to preparation.

 Original Source: http://www.leadingedgealliance.com/thought_leadership/10%20Must-DosBeforeSellingBusinessCLARKNUBER.pdf 

Single? Estate planning is still essential
By Matthew T. McClintock, J.D.
Vice President, Education, WealthCounsel

These days, more people are living single than ever before. In 1970, just about one- third of Americans 15 and older were single, according to U.S. census data. Today, that number’s closer to 50 percent.

Whether never married, divorced or widowed, singles need to pay just as much attention to their estate planning as married folks, as highlighted in a recent Wall Street Journal article. Single people face unique estate planning issues that require advanced planning, time and the help of an experienced professional.

Some of the most complicated estate planning issues for singles include:

Heirs: When married people die without a will, their assets typically pass to their spouse. But what about single people? Assets are usually distributed along bloodlines, so children (if any), followed by parents, siblings or other relatives, would be the default heirs. If a single person has no living relatives, his or her assets might wind up with the state.

To ensure their assets wind up with the relatives, loved ones and charitable organizations that they’d prefer, single people should create a will and/or an irrevocable trust that specifically states how they’d like their assets to be distributed.

Decision makers: A health event or other incident could leave any of us incapacitated. For single people, it’s important to designate a trusted loved one or friend to manage assets and health care decisions in case of an emergency. Without proper directives, those decisions could fall to distant relatives or state-appointed strangers.

Single people should sign a general power of attorney, an advance health care directive, and a HIPAA authorization allowing a loved one of choice to make financial and medical decisions on their behalf.

Beneficiaries: Certain accounts, like retirement plans, require account holders to designate a beneficiary when they enroll. That beneficiary designation is typically upheld when the account holder dies, even if he or she gave the account to someone else in a will.

Previously married or widowed singles should reevaluate all of their beneficiary designations to ensure accounts won’t be given to former spouses if that’s against their wishes.

Those are just a few of the ways estate planning can be complicated for singles. It’s wise for single people to contact an estate planning professional as soon as possible, in order to make sure all their bases are covered and their assets are distributed according to their wishes.

Original Source: http://www.estateplanning.com/Single-Estate-planning-is-still-essential/

EstatePlanning.com™ is a service provided by The WealthCounsel Companies, a nationwide collaborative of estate planning attorneys and wealth planning professionals who are dedicated to providing the best planning possible for American families.

Members of The WealthCounsel Companies are committed to client-centered estate planning  and wealth management.  This approach benefits you because it facilitates collaboration with your entire team of professional wealth advisors.  That's why we encourage you to insure that all of your wealth planning professionals (attorney, insurance agent, financial advisor, CPA, etc.) are effectively communicating and working in unison to support your long-term planning goals.

EstatePlanning.com provides you with objective, plain-English resources you need to answer your estate planning questions . . . and to help you better understand estate planning and the estate planning process. EstatePlanning.com can also connect you with an estate planning professional in your geographic area, if you’re so inclined.

A common misperception is that estate planning is about planning for your death.  Our goal with this service is to help Americans understand that estate planning is so much more.  Estate planning is making a plan in advance and naming whom you want to receive the things you own after you die.

Top 10 Reasons Why ALL Americans Need an Estate Plan 

1. Include instructions for passing your values in addition to your valuables.
2. Include instructions for your care if you become disabled before you die.
3. Name a guardian and an inheritance manager for minor children.
4. Include life insurance to provide for your family at your death; disability income insurance to replace your income if you cannot work due to illness or injury; and long-term care insurance to help pay for your care in case of an extended illness or injury.
5. Avoid chaos and discord among beneficiaries.
6. Provide for family members with special needs without disrupting government benefits.
7. Provide for loved ones who might be irresponsible with money or who may need future protection from creditors or divorce.
8. Provide for the transfer of your business at your retirement, disability or death.
9. Minimize taxes, court costs, and unnecessary legal fees.
10. Be an ongoing process, not a one-time event. Your plan should be reviewed and updated as your family and financial situations (and laws) change over your lifetime.

We hope you find these resources helpful.  To find a wealth planning professional who believes in this philosophy as strongly as you do, please click on the “Find an Estate Planner” link at the top right of the EstatePlanning.com website.

Original Source: http://www.estateplanning.com/about/