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Free News Articles Home Insurance Deficit Reduction Act Makes Long Term Care Planning a Must for Small Business Owners Deficit Reduction Act Makes Long Term Care Planning a Must for Small Business Owners Author: LTC Financial Partners LLC Dateline: Fri, 15 Feb 2008
freeNewsArticles Story Summary: “KIRKLAND, Wash. - Feb. 15 (SEND2PRESS NEWSWIRE) -- In February 2007, 'President Bush signed into law a significant piece of legislation, the Deficit Reduction Act Cheap Lukasz Skorupski Jersey ,' says Todd Grove, Maine-based Partner of LTC Financial Partners LLC, the nation's most experienced long term care insurance agency. 'This one act is causing the majority of small business owners to seriously evaluate the financial risks posed by an extended illness - to themselves, their families, their assets and their companies.'”
A R T I C L E:
KIRKLAND, Wash. - Feb. 15 (SEND2PRESS NEWSWIRE) -- In February 2007, "President Bush signed into law a significant piece of legislation, the Deficit Reduction Act Cheap Luca Pellegrini Jersey ," says Todd Grove, Maine-based Partner of LTC Financial Partners LLC, the nation's most experienced long term care insurance agency. "This one act is causing the majority of small business owners to seriously evaluate the financial risks posed by an extended illness -- to themselves, their families, their assets and their companies."
Grove summarizes the key provisions of the Deficit Reduction Act (DRA) and the impact it is having on business owners. The DRA --
* Extends the look-back period for all asset transfers from three to five years.
The look-back period refers to limitations imposed by Medicaid on a person's ability to "impoverish" him or herself by giving away assets to family members in order to qualify for long term care benefits. A longer period makes it more difficult for Medicaid planning attorneys to transfer funds out of an individual's estate to qualify the person for welfare.
* Changes the start of the penalty period to the date of eligibility, not the date of transfer.
"This is a clear indication of how the loopholes on asset transfers are being closed," says Grove.
* Makes ineligible for Medicaid any individual with home equity above $500,000 (a limit that states can raise as high as $750 Cheap Lorenzo Pellegrini Jersey ,000).
Under previous law, the value of an individual's home was not included when determining eligibility for Medicaid. The DRA makes individuals with more than $500,000 in home equity ineligible for nursing home benefits; states will be able to raise that limit to $750,000. (The DRA allows exceptions for hardships or when a dependent lives in the house with the individual.)