Dale Krause
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Krause Financial Services is the only attorney-led financial services firm in the nation that specializes in helping families qualify for Medicaid benefits through the use of Medicaid Compliant Annuities, and Veterans Aid & Attendance benefits through the use of various life and annuity insurance products.
With more than 20 years of experience, Dale M. Krause, J.D., LL.M., is a national Veterans Benefits and Crisis Medicaid Planning expert, which has provided him with the distinct reputation of being the "Pioneer of Medicaid Compliant Annuities." Mr. Krause has built a practice that supports elder law attorneys and their clients with insurance products that may reduce or possibly eliminate the monthly costs associated with an assisted living or nursing home stay.
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When investing in an annuity providing immediate payments an applicant can usually select one of three different payout options: Life-Only Payout: Payments continue as long as the owner/annuitant lives. Upon death, the payments cease, regardless of how long the policy has been in force.
In the last five years, 10 companies that were once in the top 20 market share in the long-term care insurance industry have bailed, according to Limra, an industry research group. The most recent to leave include Prudential Financial and Metlife.
North Dakota is amongst a handful of states that impose the annuity legislation outlined in the Deficit Reduction Act of 2005 ("DRA") as well as their own added annuity requirements. In addition to those of DRA, one of the added annuity requirements imposed by North Dakota is that all monthly payments from all annuities owned by the purchaser must not exceed the minimum monthly maintenance needs allowance.
In most states retirement accounts and retirement annuities are treated differently for Medicaid purposes. A retirement account will traditionally be considered under the retirement asset rules, and applied to eligibility accordingly. A retirement annuity will traditionally be considered under the annuity rules, and applied to eligibility accordingly. In short, the investment vehicle is first considered, and then the tax status of the funds held inside.
The legislation regarding annuities contained within the Deficit Reduction Act of 2005 ("DRA") seems to apply only to the "annuitant who has applied for medical assistance." However, most post-DRA states apply the provisions also to an annuitant that is the spouse of an individual who has applied for medical assistance.
When a client takes money out of an IRA before reaching age 59 and a half he or she is liable not only for income taxes on the distribution, but also for a 10% penalty - which is based on the withdrawn amount.
Generally speaking, after the Deficit Reduction Act of 2005, if a community spouse uses a Medicaid Compliant Annuity, or promissory note, to eliminate the spend-down amount an institutionalized spouse is immediately eligible for Medicaid benefits. After the purchase, if the community spouse's income is less than his or her monthly maintenance needs allowance the shortfall would be shifted from his or her institutionalized spouse's income prior to determining the Medicaid co-pay.
An Asset Protection Trust ("APT") is an Intentionally Defective Grantor Trust. An Intentionally Defective Grantor Trust is a trust that treats the assets in the trust differently for income tax purposes than for estate tax and gift tax purposes. The veteran will be the grantor, but not a beneficiary.
A recent court case, Hutcherson v. Arizona Health Care Cost Containment System Administration ("AHCCCS"), brought a ruling down regarding the State's recovery rights as a beneficiary of a Medicaid Compliant Annuity.
Trusts come in many different forms and are used for many different purposes. Generally, trusts are either revocable or irrevocable, grantor or non-grantor, inter vivos or testamentary, and simple or complex.
