Using a CRAT to pay for long-term care insurance
Article Abstract:
Long-term care insurance premiums can be paid for through an estate planning technique utilizing a charitable remainder annuity trust, or CRAT. Tax deductions for these premiums are authorized by the 1996 Health Insurance Portability and Accountability Act, enhancing the usefulness of a CRAT to pay the premiums. A CRAT's sale of appreciated assets are exempt from capital gains taxes, facilitating the investment of sufficient funds to cover the annuity payout and the subsequent insurance purchase.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1997
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Pooled income funds: a good vehicle for smaller charitable gifts
Article Abstract:
Pooled income funds are investment devices established by charities to accept gifts of remainder interests. Donors to such a fund can take an income tax deduction based on the type and value of the donated property. There are also significant implications for gift taxes and estate taxes. Prospective donors should have their attorneys verify that the pooled income fund is qualified to accept donations, review the fund's financial history, and complete the appropriate tax forms.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1997
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Using private annuities and installment notes in Medicaid planning
Article Abstract:
Private annuities and installment sales are useful planning vehicles where the Medicaid planning qualification period is at issue. Several legislative provisions discourage Medicaid planning. Assets which are includable in Medicaid qualification accountings may legitimately become nonincludable income through the use of these vehicles.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
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