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Case Studies
James (Jim) Swain, JD
Founder and CEO of the Academy of VA Pension Planners, LLC
Valerie Peterson, JD
Executive Director of ElderCounsel, LLC
Case #1WWII Veteran (85) and Spouse (deceased)Veteran is in a Memory Care UnitAnnuity has $150,000 of gainTotal Net Worth = $495,000
• House = $110,000• IRA = $ 25,000• Annuity = $350,000• Liquid assets = $ 10,000
Case #1
Total Current Income = $2,500Total Current UME = (4,881)IVAP = $ 0
Can qualify for Pension
Case #1
After Plan is ImplementedTotal Current Income = $4,469
Total Current UME = (4,881)IVAP = $ 0
Can qualify for Full Pension
Case #1 – Recommendations
1. Income tax analysis for IRA withdrawal$1,500
2. VAPT (Veterans Asset Protection Trust) for assets 7,000
3. Transfer House to IDGT 4,000
4. Purchase SPIA with $120,000 of annuity – 5 year payout
5. Leave $25,000 in Ira and $10,000 in joint account with children
6. Transfer excess assets to VAPT
7. Withdraw $30,000 from annuity
TOTAL INVESTMENT $12,500
Case #1 – Benefits to Client
1. Qualify for VA Pension (5 year benefit) $98,600
2. Reduces future income tax liability on annuity 45,000
3. Start clock for Medicaid
BENEFITS$143,600ROI (return on Investment) 1,149%
Case #2WWII Veteran (85) and Spouse (84)Veteran is in a Memory Care UnitSpouse is in good healthLong Term Policy paying $3,000 per monthTotal Net Worth = $667,300
• House = $350,000• IRA = $ 91,000• Liquid assets = $226,300
Case #2
Total Current Income = $9,391Total Current UME = (6,701)IVAP = $2,689
Can not qualify for Pension
Case #2
After Plan is ImplementedTotal Current Income = $6,701
Total Current UME = (6,701)IVAP = $ 0
Can now qualify for Full Pension
Case #2 – Recommendations
1. Income tax analysis for IRA withdrawal$1,500
2. VAPT (Veterans Asset Protection Trust) for assets 7,000
3. Transfer House to IDGT 4,000
4. Reduce LTC Payments to stretch-out LTC payments
5. Leave $30,000 in joint accounts with children
6. Transfer excess assets to VAPT
TOTAL INVESTMENT $12,500
Case #2 – Benefits to Client
1. Qualify for VA Pension (5 year benefit) $116,940
2. Stretch-out LTC Payments
3. Reduces income tax liability on IRA 15,000
4. Start clock for Medicaid
BENEFITS$116,900ROI (return on Investment) 1,056%
Case #3WWII Veteran (85) and Spouse (59)Veteran is in a Memory Care UnitSpouse is in good health3RD marriage for veteran and 2nd for spouseTotal Net Worth = $1,212,000
• Houses = $ 310,000• IRAs = $ 439,000• Liquid assets = $ 463,000
Case #3
Total Current Income = $7,580Total Current UME = (4,696)IVAP = $2,884
Can not qualify for Pension
Case #3 – Beginning Assets
Assets Veteran Spouse Joint TotalHouse $110,000 $200,000 $310,000IRA $423,000 16,000 439,000Annuity 85,000 85,000Other 198,000 180,000 378,000TOTAL $706,000 $126,000 $380,000 $1,212,000
Case #3 - Revised
After Plan is ImplementedTotal Current Income = $2,725
Total Current UME = (4,696)IVAP = $ 0
Can now qualify for Full Pension
Case #3 – Revised
Assets Veteran Spouse Joint TotalHouse $110,000 $200,000 $310,000IRA $ 439,000 439,000Annuity 85,000 85,000Other 20,000 358,000 378,000TOTAL $20,000 $634,000 $558,000 $1,212,000
Case #3 – Recommendations
1. Divorce – give IRA to Spouse in settlement$3,500
2. VAPT (Veterans Asset Protection Trust) for assets 7,000
3. Transfer Veteran’s House to IDGT 4,000
4. Family Meetings to work out divorce settlement 2,000
5. Keep $20,000 in joint account with children
6. Transfer excess assets to VAPT
TOTAL INVESTMENT $16,500
Case #3 – Benefits to Client
1. Qualify for VA Pension (5 year benefit) $98,640
2. Move income tax liability on IRA to Spouse rather
than split non-taxable assets 126,900
2. Start clock for Medicaid
BENEFITS$225,540ROI (return on Investment) 1,367%
Case #4
WWII Veteran (85) and Spouse (84)Veteran had stroke being care for at homeSpouse is in fair healthTotal Net Worth = $818,300
• Houses = $350,000• IRAs = $242,000• Liquid assets = $226,300
Case #4
Total Current Income = $2,801Total Current UME = (2,187)IVAP = $ 614
Can qualify for a portion of Pension
Case #4 – Beginning Assets
Assets Veteran Spouse Joint TotalHouse $350,000 $350,000IRA $226,000 16,000 242,000AnnuityOther 226,300 226,300TOTAL $226,000 $16,000 $576,300 $818,300
Case #4 - Revised
After Plan is ImplementedTotal Current Income = $4,620
Total Current UME = (4,837)IVAP = $ 0
Can now qualify for Full Pension
Case #4 – Revised Assets
Assets Veteran Spouse Trust TotalHouse $350,000 $350,000IRA $16,000 $16,000Annuity 226,300 226,300Other 10,000 10,000 6,000 8,000TOTAL $10,000 $26,000 $582,300 $618,300
Case #4 – Recommendations
1. Personal Caregiver Agreement$2,500
2. VAPT (Veterans Asset Protection Trust) for assets 7,000
3. Transfer Veteran’s House to IDGT 4,000
4. Calculate IRA withdrawals 1,500
5. Purchase SPIA - $200,000 of IRA assets – 10 year payout 0
6. Withdraw $26,000 from IRA
TOTAL INVESTMENT $15,000
Case #4 – Benefits to Client
1. Qualify for VA Pension (5 year benefit) $116,940
2. Withdraw IRA without income taxes 67,500
3. Start clock for Medicaid
BENEFITS$184,440
ROI (return on Investment) 1,230%
Case #5
WWII Veteran (85) never marriedVeteran had strokeHe is in an ALFTotal Net Worth = $727,500
• Annuities = $707,500 ($313,000 gain)• Liquid assets = $ 20,000
Case #5
Total Current Income = $1,527Total Current UME = (5,081)IVAP = $ 0
Can qualify for Pension
Case #5 – Beginning Assets
Assets Value
Annuities $707,500
Checking/savings $20,000
TOTAL $727,500
Case #5 - Revised
After Plan is ImplementedTotal Revised Income = $4,822
Total Current UME = (5,081)IVAP = $ 0
Can now qualify for Full Pension
Case #5 –Revised Assets
Assets Veteran Trust Total
Savings $20,000 $20,000
Invested 0 $348,000 $348,000
Total $20,000 $348,000 $368,000
Case #5 – Recommendations
1. Income tax analysis for annuity withdrawals $ 9,000
2. VAPT (Veterans Asset Protection Trust) for assets 7,000
3. Purchase SPIA - $359,000 of Annuity assets – 10 year payout
6. Withdraw $348,000 from annuities over 2 years
TOTAL INVESTMENT $16,000
Case #5 – Benefits to Client
1. Reduce income tax liability of annuities saves$313,000
2. Qualify for VA Pension (5 year benefit) 98,640
3. Start clock for Medicaid
BENEFITS$411,640
ROI (return on Investment) 2,573%
Case #6
WWII Veteran (85) and Spouse (84)Veteran had stroke in nursing home on MedicaidSpouse is in Assisted LivingTotal Net Worth = $207,500
• House = $100,000• IRAs = $ 75,000• Liquid assets = $ 32,500
Case #6
Total Current Income = $1,950Total Current UME = (3,756)IVAP = $ 0
Can qualify for a portion of Pension
Case #4 – Beginning Assets
Assets Veteran Spouse Joint TotalHouse $100,000 $100,000IRA $75,000 75,000Annuity 25,000 25,000Other 7,500 7,500TOTAL $75,000 $25,000 $107,500 $207,500
Case #6 - Revised
After Plan is ImplementedTotal Revised Income = $2,721
Total Current UME = (3,756)IVAP = $ 0
Can now qualify for Full Pension
Case #6 – Revised Assets
Assets Veteran Spouse Children TotalHouse $20,000 $80,000 $100,000IRAAnnuity 25,000 25,000Other 7,500 7,500TOTAL $ 0 $52,500 $80,000 $132,500
Case #6 – Recommendations
1. Income tax analysis for IRA and annuity withdrawals$4,000
2. Put house in Spouse’s name and gift majority of equity 4,000
3. Purchase SPIA - $75,000 of IRA assets –6 year payout 0
TOTAL INVESTMENT $8,000
Case #6 – Benefits to Client
1. Qualify for VA Pension (5 year benefit) $116,940
2. Preserve Medicaid Qualification ($6,000 x 5 years)
BENEFITS$116,940
ROI (return on Investment) 1,462%
Thanks for attending
Together we can help those that have built this country
James B. Swain, JD, MBA Founder and CEO [email protected]/888-928-2779 www.avapp.org