Social Security

The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs. The larger and better known programs are:

U.S. Social Security is a social insurance program funded through dedicated payroll taxes called Federal Insurance Contributions Act (FICA). Tax deposits are formally entrusted to Federal Old-Age and Survivors Insurance Trust Fund, or Federal Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund. The main part of the program is sometimes abbreviated OASDI (Old Age, Survivors, and Disability Insurance) or RSDI (Retirement, Survivors, and Disability Insurance). When initially signed into law by President Franklin D. Roosevelt in 1935 as part of hisNew Deal, the term Social Security covered unemployment insurance as well. The term, in everyday speech, is used to refer only to the benefits for retirement, disability, survivorship, and death, which are the four main benefits provided by traditional private-sector pension plans.

Wikipedia

Medicare

Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over, or who meet other special criteria. Medicare operates as a single-payer health care system. The Social Security Act of 1965 was passed by Congress in late-spring of 1965 and signed into law on July 30, 1965, by President Lyndon B. Johnson as amendments to Social Security legislation. At the bill-signing ceremony President Johnson enrolled former President Harry S. Truman as the first Medicare beneficiary and presented him with the first Medicare card.
Wikipedia

Medicaid

Medicaid is the United States health program for eligible individuals and families with low incomes and resources. It is a means-tested program that is jointly funded by the states and federal government, and is managed by the states.[1] Among the groups of people served by Medicaid are eligible low-income parents, children, seniors, and people with disabilities. Being poor, or even very poor, does not necessarily qualify an individual for Medicaid. It is estimated that approximately 60 percent of poor Americans are not covered by Medicaid. Medicaid is the largest source of funding for medical and health-related services for people with limited income in the US. Because of the aging population, the fastest growing aspect of Medicaid is nursing home coverage.
Wikipedia

Veterans Administration

The United States Department of Veterans Affairs (VA) is a government-run military veteran benefit system with Cabinet-level status. It is responsible for administering programs of veterans’ benefits for veterans, their families, and survivors. The benefits provided include disability compensation, pension, education, home loans, life insurance, vocational rehabilitation, survivors’ benefits, medical benefits and burial benefits. It is administered by the United States Secretary of Veterans Affairs.

It is a single-payer government-run health-care system, and the American government’s fourth largest department, after the United States Department of Defense, United States Department of Health and Human Services, and United States Department of Transportation. With a total 2009 budget of about $87.6 billion, VA employs nearly 280,000 people at hundreds of Veterans Affairs medical facilities, clinics, and benefits offices. The United States Department of Veterans Affairs lists several benefits for veterans including education, home loans, deferred compensation, pension, survivors' benefits, burial, vocational rehabilitation, employment, and life insurance.
Wikipedia
Department of Veterans Affairs
Veteran Benefits

Veterans Health Administration

Veterans Health Administration (VHA) is the component of the United States Department of Veterans Affairs (VA) that implements the medical assistance program of the VA through the administration and operation of numerous VA outpatient clinics, hospitals, medical centers and longterm healthcare facilities (i.e., nursing homes.

VHA is especially praised for its efforts in developing electronic medical records which can be accessed online (with secure passwords) by health care providers far away from where the records are kept. Its research into developing better-functioning prosthetic limbs, and treatment of PTSD are also heralded. VHA has devoted many years of research into the health effects of the herbicide Agent Orange used by military forces in Vietnam.

VHA through its academic affiliations has helped train many thousands of physicians. (Several newer VA medical centers are purposely located adjacent to medical schools). VHA support for research and residency/fellowship training programs has made the VA system a leader in the fields of geriatrics, spinal cord injuries, Parkinson's disease, and palliative care.
Wikipedia
The Best Care Anywhere

Veteran's Aid and Attendance Benefit

The Veterans Administration offers Aid and Attendance as part of an "Improved Pension" Benefit that is largely unknown. This Improved Pension allows for Veterans and surviving spouses who require the regular attendance of another person to assist in eating, bathing, dressing, undressing, medication dosing, or taking care of the needs of nature to receive additional monetary benefits. It also includes individuals who are blind or a patient in a nursing home because of mental or physical incapacity. Assisted care in an Assisted Living facility also qualifies.

This most important benefit is overlooked by many families with Veterans or surviving spouses who need additional monies to help care for ailing parents or loved ones. This is a "Pension Benefit" and IS NOT dependent upon service-related injuries for compensation. Aid and Attendance can help pay for care in the home, Nursing Home or Assisted Living facility. A Veteran is eligible for up to $1,632 per month, while a surviving spouse is eligible for up to $1,055 per month. A couple is eligible for up to $1,949 per month*.
read article

Veterans Pension Program

What is VA Pension for veterans?
Pension is a benefit paid to wartime veterans who have limited or no income, and who are age 65 or older, or, if under 65, who are permanently and totally disabled. Veterans who are more seriously disabled may qualify for Aid and Attendance or Housebound benefits. These are benefits that are paid in addition to the basic pension rate.

Are there any exclusions to income or deductions that may be made to reduce countable income?

Yes, there are exclusions. The following are examples of what may be excluded:

Public assistance such as Supplemental Security Income is not considered income. Many other specific sources of income are not considered income, however, all income should be reported. VA will exclude any income that the law allows. A portion of unreimbursed medical expenses paid by the claimant after VA receives the claimant's pension claim may be deducted. (These are expense you have paid for medical services or products for which you will not be reimbursed by Medicare or private medical insurance.)
link to Title 38 pension info
link to eligibility info

Check if your out of pocket payments for nursing homes are deductions from income. So in that case folks with an income greater than the allowable income may be eligible. See the VA for guidance.

Long Term Care

Long-term care (LTC) is a variety of services which help meet both the medical and non-medical need of people with a chronic illness or disability who cannot care for themselves for long periods of time.

It is common for long-term care to provide custodial and non-skilled care, such as assisting with normal daily tasks like dressing, bathing, and using the bathroom. Increasingly, long term care involves providing a level of medical care that requires the expertise of skilled practitioners to address the often multiple chronic conditions associated with older populations. Long-term care can be provided at home, in the community, in assisted living or in nursing homes. Long-term care may be needed by people of any age, even though it is a common need for senior citizens.
The Centers for Medicare and Medicaid Services (CMS) estimates that about nine million men and women over the age of 65 in the US will need long-term care in 2006. By 2020, 12 million older Americans will need long-term care. It is anticipated that most will be cared for at home; family and friends are the sole caregivers for 70 percent of the elderly. A study by the U.S. Department of Health and Human Services says that people who reach age 65 will likely have a 40 percent chance of entering a nursing home. About 10 percent of the people who enter a nursing home will stay there five years or more.

A 2006 study conducted by AARP found that most Americans are unaware of the costs associated with long-term care and overestimate the amount that government programs such as Medicare will pay.
Wikipedia
AARP: Long Term Care

Will (Law)

In common law, a will or testament is a document by which a person (the testator) regulates the rights of others over his or her property or family after death. For the devolution of property not disposed of by will, see inheritance and intestacy. In the strictest sense, a "will" is a general term, while "testament" applies only to dispositions of personal property (this distinction is seldom observed). A will may also create a trust that is effective only after the death of the testator. Any trust created in a will is generally referred to as a "testamentary trust".
Wikipedia

Living Trust

In the United States, a living trust refers to a trust that may be revocable by the trust creator or settlor (known by the IRS as the Grantor). Living trusts are often used because they may allow assets to be passed to heirs without going through the process of probate. Avoiding probate will normally save substantial costs (the probate courts, in some states, charge a fee based on a percentage net worth of the deceased), time, and maintain privacy (the probate records are available to the public, while distribution through a trust is private). Additionally, living trusts can also be utilized to plan for unforeseen circumstances such as incapacity or disability.
Wikipedia

Advance Health Care Directive

Advance health care directives, also known as advance directives or advance decisions, are instructions given by individuals specifying what actions should be taken for their health in the event that they are no longer able to make decisions due to illness or incapacity. A living will is one form of advance directive, leaving instructions for treatment. Another form authorises a specific type of power of attorney or health care proxy, where someone is appointed by the individual to make decisions on their behalf when they are incapacitated. People may also have a combination of both. It is often encouraged that people complete both documents to provide the most comprehensive guidance regarding their care.
Wikipedia

It pays to delay taking Social Security benefits

Does it make sense to defer Social Security benefits? The answer is yes. This is not the conventional wisdom. It says to take the money and run. A fresh examination, however, indicates the conventional wisdom is wrong.

Let's start with a simple exercise. For anyone born in 1943 or later, Social Security benefits will increase by 8 percent for each year of deferral. The benefits will also increase by the cost-of-living adjustment that all recipients get. That's a hefty increase. A worker who is entitled to benefits of $1,000 a month at 66, for instance, would enjoy an increased benefit of $80 a month -- simply by delaying a year. Is that a good idea? Let's compare it to alternatives.

Interesting article. Also consider a spouse who is entitled to half of the retiree's benefit. Also consider tax and investment income that will vary for each person. Of course these articles can't consider the variations for each person.... Bill

read article

WebCPA article

When to take Social Security

Social Security Online

Retire Benefits by Year of Birth

Break-Even Age
Subscribe to: Posts (Atom)