Numbers and More for 2024: IRS Rulings, Tax Info, and Medicaid Updates

The Red Wagon Estate Planning & Elder Law Show

It’s that time of year when Jeff provides the newest and most applicable IRS and Medicaid numbers for tax and estate planning purposes. Many of these numbers are discussed in our free, educational workshops. Jeff also likes to review them here along with related questions we get from our clients.

WHAT YOU NEED TO KNOW

(00:00) Episode introduction.

(05:50) The federal estate tax limit is now $13.61 million per person or $27.22 MM for a married couple.

(09:14) The annual exclusion gift is set at $18,000 per person per recipient per year. Ask your tax preparer if you should file a gift tax return.

(10:40) For Medicaid purposes in Pennsylvania in 2024, the income limit is $2,829 per month. If your income is greater than the limit, you're allowed $2,400 in resources. If less than the limit, you can have $8,000 in resources.

(11:20) To be eligible for waiver services in the home, your income must be less than $2,829 + $500 per month. Talk to your financial professional.

(12:17) For a community spouse’s protected share amounts, the maximum is 50% of the assets, but no more than $154,140 and no less than $30,828.

(12:59) To calculate penalty for gifting during look back period and days until Medicaid eligibility for nursing home or waiver, use the amount gifted divided by $379.65 per day or $11,547 per month.

(14:04) The Minimum Monthly Maintenance Needs Allowance (MMMNA) refers to income limits for the community spouse. The maximum is $3,853.50 and the minimum is $2,465.

(14:20) The excess home minimum is $713,000 and the maximum is $1,071,000. The home maintenance deduction is $965.10 per month. The heating standard is $750 per month and the non-heating standard is $401. The personal needs allowance is $45 per month.

(15:30) A new IRS ruling headline suggests that children are losing step up in basis with irrevocable trusts. This does not apply to the type of trusts used at Bellomo.

(19:13) The grantor trust rules in Pennsylvania now mimic the federal grantor trust rules. Nothing will change for most Bellomo clients.

(21:30) The IRS announced a potential gift tax for trust beneficiaries. This should not affect you if Bellomo created your trust.

ABOUT BELLOMO & ASSOCIATES

Jeffrey R. Bellomo, the founder of Bellomo & Associates, is a licensed and certified elder law attorney with a master’s degree in taxation and a certificate in estate planning. He explains complex legal and financial topics in easy-to-understand language.

Bellomo & Associates is committed to providing education so that what happened to the Bellomo family doesn’t happen to your family. We conduct free workshops on estate planning, crisis planning, Medicaid planning, special needs planning, probate administration, and trust administration. Visit our website (https://bellomoassociates.com/) to learn more.

LINKS AND RESOURCES MENTIONED

Bellomo & Associates workshops:https://bellomoassociates.com/workshops/

• Life Care Planning
• The Three Secrets of Estate Planning
• Nuts & Bolts of Medicaid

For more information, call us at [phone].

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WAYS TO WORK WITH JEFFREY BELLOMO

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