Below, I have set out some key Elder Law, Estate Tax and Medicaid figures for 2012. Please review these numbers for the coming year. They will play an important role in estate planning and nursing home planning during 2012 and beyond.
Medicaid Spousal Impoverishment Figures for 2012:
The new minimum community spouse resource allowance (CSRA) is $22,728, and the new maximum CSRA is $113,640. The new maximum monthly maintenance needs allowance is $2,841. The minimum monthly maintenance needs allowance remains $1,838.75 until July 1, 2012.
The income cap for 2012 applicable in “income cap” states will be $2,094 a month.
Minimum: $525,000; Maximum: $786,000
Gift and estate tax figures
Federal estate tax exemption: $5.12 million for individuals
Lifetime tax exclusion for gifts: $5.12 million
Generation-skipping transfer tax exemption: $5.12 million
The annual gift tax exclusion remains at $13,000.
Long-Term Care Premium Deductibility Limits for 2012
The Internal Revenue Service has announced the 2012 limitations on the deductibility of long-term care insurance premiums from taxes. Any premium amounts above these limits are not considered to be a medical expense.
|Attained age before the close of the taxable year||Maximum deduction|
|40 or less||$350|
|More than 40 but not more than 50||$660|
|More than 50 but not more than 60||$1,310|
|More than 60 but not more than 70||$3,500|
|More than 70||$4,370|
Benefits from per diem or indemnity policies, which pay a predetermined amount each day, are not included in income except amounts that exceed the beneficiary’s total qualified long-term care expenses or $310 per day (for 2012), whichever is greater.
Medicare Premiums, Deductibles and Copayments for 2012
- Basic Part B premium: $99.90/month (was $96.40 for most beneficiaries)
- Part B deductible: $140 (was $162)
- Part A deductible: $1,156 (was $1,132)
- Co-payment for hospital stay days 61-90: $289/day (was $283)
- Co-payment for hospital stay days 91 and beyond: $578/day (was $566)
- Skilled nursing facility co-payment, days 21-100: $144.50/day (was $141.50)
Premiums for higher-income beneficiaries:
- Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay a monthly premium of $139.90 (was $161.50).
- Individuals with annual incomes between $107,000 and $160,000 and married couples with annual incomes between $214,000 and $320,000 will pay a monthly premium of $199.80 (was $230.70).
- Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 in 2010 will pay a monthly premium of $259.70 (was $299.90).
- Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more in 2010 will pay a monthly premium of $319.70 (was $369.10).
Rates differ for beneficiaries who are married but file a separate tax return from their spouse:
- Those with incomes between $85,000 and $128,000 will pay a monthly premium of $259.70 (was $299.90).
- Those with incomes greater than $128,000 will pay a monthly premium of $319.70 (was $369.10).
For more information, click here.
Social Security Benefit Changes for 2012
Monthly federal Supplemental Security Income (SSI) payment standard will be $698 for an individual and $1,048 for a couple.
Average monthly Social Security retirement payment: $1,229 a month (was $1,186) for individuals and $1,994 (was $1,925) for couples
Maximum amount of earnings subject to Social Security taxation: $110,100 (was $106,800)
For a complete list of the 2012 Social Security changes, go to: http://www.socialsecurity.gov/pressoffice/factsheets/colafacts2012.htm