Teri is a distinct widow, age 78, active in the academic American accompaniment of New Worcester. Teri purchased a abode in New Worcester in 1967 for $28,000. The accepted fair bazaar amount of the abode is $385,000. Teri has four children: Alan, Beth, Cathy and Don. All four are adults and all four accept accouchement of their own. However, Don has been accepting conjugal troubles and is advertent divorce. Beth is conflicting from one of her developed children, Bertha.
Teri is in almost acceptable health, but suffers from hypertension and balmy affection disease. She is on medication and is actuality advised for both. Mentally, she is aciculate and astute.
Aside from the house, Teri has about $200,000 in banknote and antithesis in accumulation and a 401(k) anniversary with a accepted antithesis of $225,000. She is demography anniversary minimum appropriate distributions from that account. In addition, she receives $1,800 per ages in amusing aegis benefits.
She is primarily anxious with Medicaid planning as she doesn't appetite to lose her assets if affected to go to a nursing home eventually. Your authoritative advocate decides to acclaim that Teri set up an certain Medicaid planning assurance and to alteration some or all of her assets to that trust.
During the advance of the affair and consecutive discussions, the afterward questions appear up:
1) How abundant of a taxable basic accretion would Teri accept to address if she awash the abode tomorrow for fair bazaar value?
2) If the abode is transferred to the Medicaid trust, what should the assurance do to ensure the best basic assets tax analysis of the house?
3) What should the assurance do to ensure that Bertha and Don's soon-to-be-ex apron do not accept admission to the assurance funds?
4) Should the 401(k) assets be transferred to the trust? Explain.
5) What affectionate of rights or admiral can or should the assurance cautiously accord to Teri?
6) The accompaniment of New Worcester has an assets absolute of $1,000/month to be acceptable for Medicaid. Is there annihilation that can be done to assure the balance amusing aegis payments from actuality accountable to absorb bottomward requirements?
Please acknowledgment anniversary catechism in 1-2 paragraphs. Amuse accomplish abiding to explain your answers and amuse adduce applicative ascendancy for all assertions of law that you make.
There is no charge to IRAC anniversary question.
Order a unique copy of this paper
Top Academic Writers Ready to Help
with Your Research Proposal