MEDICAID PLANNING: EXAMPLES
01.Core Concepts
• Larry worked as a plumber since he • Barry worked as a plumber since he was 18 years old. was 18 years old. • He worked hard his entire life, but• He worked hard his entire life and has also enjoyed his life by buying saved a fair amount of money by expensive cars, vacationing every living modestly. chance he had, and always buying the latest in fashion trends. • He turned age 65 and has been diagnosed with Alzheimer’s disease. • He has almost nothing saved and lives in an apartment. He just turned • He is concerned that he will spend his age 65 and has been diagnosed life’s savings on long-term care. He is with Alzheimer’s disease. also concerned that his wife will be • He is very concerned about thewithout the necessary funds to care progressiveness of the disease andfor her needs. the prospect of needing long-term care and not being able to afford it. 65 MEDICAID PLANNING • In Helvering v. Gregory, Judge Learned Hand famously wrote about tax planning: • “Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not ev en a patriotic duty to increase one’s taxes.”