MEDICAID PROTECTIONS SHOULD BE AVAILABLE TO SAME-SEX MARRIED COUPLES

MEDICAID PROTECTIONS SHOULD BE AVAILABLE TO SAME-SEX MARRIED COUPLES

Several major federal agencies have announced that they are now providing federal benefits to same-sex legally married couples.  Most recently, the Internal Revenue Service announced that same-sex legally married couples would receive all federal tax rights and responsibilities as provided to heterosexual couples Click here for I.R.S. Release. The best news is that these rights are available regardless of where the couple resides.  Living in a non-recognition state has no impact. Additionally, Health & Human Services announced that Medicare benefits would also be provided to same-sex legally married couples regardless of state of residence.   Additionally, Health & Human Services announced that Medicare benefits would also be provided to same-sex legally married couples regardless of state of residence. Click here for the HHS Press Release 

 

Medicaid is a federal program that helps pay for long-term care. Now that many federal agencies are complying with the U.S. Supreme Court's ruling in Windsor Windsor legal decision, it seems apropos that the Center for Medicare & Medicaid Services ("CMS") follow suit and provide same-sex legally married couples with federal Medicaid spousal impoverishment protections.  The goal of Medicaid spousal impoverishment protections is to enable the healthy spouse to remain in the home and to have sufficient financial resources to care for themself.  This is critical when a couple is coping with of one spouse having a chronic illness that cannot be cured.  When a married couple faces an illness together the experience is the same regardless of sexual orientation, race, color, or origin.  The couple needs and deserves financial security.  Medical spousal impoverishment protections include:

 1.  The healthy spouse keeping more financial resources than the ill spouse.  In Florida, the healthy spouse can keep up to $115,920.00.

 2.  The healthy spouse having a minimal level of income to help pay for the maintenance of the home.  In Florida, the healthy spouse should have a minimum of $1,891.25/month and if below that level is entitled to request diversion of income from the ill spouse.

 3. Permitting the couple to transfer resources to the healthy spouse with no penalty, look-back period, or delay in qualifying for Medicaid.

 4. Protecting the home while the ill spouse is alive as well as after the ill spouse has died. 

 

While the issue of federal benefits being available to same-sex legally married couples is a politically sensitive issue, the reality is that federal benefits must be made available to everyone equally and fairly.  This morning I sent a letter to Cynthia Mann, Deputy Director of CMS. My request is supported by the National Academy of Elder Law Attorneys (NAELA). NAELA.  Click here to read the NAELA letter I will keep my readers posted on the outcome of the request.  In the meantime, be an informed and prepared consumer. Schedule a consultation today and be on your way to creating an effective estate and long-term care plan. Discount coupon for consultation.

U.S. Treasury recognizes Same Sex Marriage based on 'Place of Celebration'

  FINALLY - I.R.S. RECOGNIZES SAME-SEX MARRIAGES FOR TAX PURPOSES

While there have been many positive developments for the LGBT community since the Supreme Court issued its opinion in Windsor on June 26, 2013, I think the most notable is the U.S. Treasury's  press release of August 29, 2013.  

 

There is no more uncertainty when it comes to married same-sex couples deciding whether to file a joint or single federal tax return.  Nor is there discrimination based on whether the taxpayer resides in a recognition state (such as New York) or, a non-recognition state (such as Florida).  The U.S. Treasury and I.R.S. will now treat same-sex married couples as married as long as they were married in a jurisdiction (U.S. or foreign country) that recognized their marriage. Click here to read the I.R.S. Revenue Ruling 2013-17 effective September 16, 2013.

During my recent speaking engagements and blogs I have stressed that with new rights also comes responsibility.  It may or may not be beneficial for a legally married same-sex couple to file a joint married federal income tax return.  Before deciding, I recommend you become an informed consumer by consulting with a certified public accountant to review your personal tax situation.  Request that the accountant perform an analysis that compares the tax result if you file separate returns compared to the tax result of filing a joint return by looking at: 

• personal and dependent exemptions
• employee benefits such as the purchase of same-sex spouse health insurance the premiums of which were deducted pre-tax
• I.R.A. and 401k retirement plan contributions
• child tax credit, and
• earned income tax credit, just to name a few. 

 In addition, be sure to ask the accountant to review both spouses' tax information and returns that were filed in the last three (3) years to determine whether you should amend those returns and/or request a credit or, refund. There is a three (3) year statute of limitation for filing a refund claim calculated from the date the return was filed or, two (2) years from when the tax was paid, whichever is later.

 

If you are not married to your life partner, having this important tax analysis done may help you to decide whether to get married. Even if you reside in a non-recognition state you are eligible for married benefits under federal tax laws.  This is very important in the event you or your partner are relocated due to employment.  Remember that these benefits are not available to same-sex couples who entered into a civil union or, domestic partnership agreement.

 

There are more revenue rulings expected concerning retroactive application of this new rule to employer sponsored benefits.  Stay in close communication with your accountant and be sure to have a team of professionals working with you including an elder law attorney and a financial advisor.