The Law Offices of Brenton C. McWilliams – Blog
The Law Offices of Brenton C. McWilliams
Welcome to our blog. Here, you will find articles on topics relating to estate planning, elder law and probate.
What is the income cap for Alabama Long Term Care Medicaid?
What is the income cap for Alabama Long Term Care Medicaid?
The income cap for Alabama Long Term Care Medicaid is $2,313 as of 2019 (the excess over this amount may be put into a Qualified Income Trust).
Medicaid is a means-based benefit program. To receive benefits under Medicaid, individuals applying and renewing must meet certain financial criteria to qualify for benefits. One of those requirements is a cap on the income the applicant receives each month. The income an applicant may receive each month is capped at $2,313 as of 2019. However, if an applicant is ineligible because the applicant receives income over the cap, the applicant can become eligible by placing the excess income in a Qualified Income Trust.
For married couples, unlike the asset requirements, the spouse’s income is not considered for eligibility. Only the applicant’s income is considered. If only one spouse is applying for or receiving Medicaid benefits, the spouse not applying for or receiving benefits (the Community Spouse) may be entitled to receive a portion of the applicant spouse’s income.
What are the asset eligibility requirements for Alabama Long Term Care Medicaid?
For a single applicant: $2,000 in countable resources
For a married couple where both spouses are receiving Medicaid benefits: $3,000 in combined countable resources
For a married couple where only one spouse is receiving Medicaid benefits: One half of the couples combined countable resources with a minimum of $25,284 and a maximum of $126,420
Medicaid Planning: What is the Medicaid lookback period?
When application for medicaid nursing home benefits is made, medicaid requires the applicant to disclose any gifts made during a certain period leading up to the application. In Alabama, that period of time is 60 months (5 years). This 60 month period of time is commonly known as the medicaid lookback period. Any gifts or transfers of assets for less than market value made during the lookback period may result in a transfer penalty.
Alabama Limited Liability Company Benefits: Limitation of Liability
The limitation of liability provided for the owner (member) is probably the number one reason businesses choose to form a limited liability company. Subject to some limitations, a limited liability company owner is not personally responsible for liabilities incurred by the LLC.
A contract or loan made by the LLC is a simple scenario to use as an example. The LLC has obligated itself to perform the contract or pay back the loan. The LLC functions as an entity separate from its owner. If the LLC defaults on the contract or loan, the LLC must pay any judgment using the assets or income of the LLC. However, if the LLC does not have sufficient assets or income to pay the judgment (or for the judgment creditor to collect from) the owner or owners (members) normally would not be required to use personal assets held outside the LLC to pay the judgment.
How is an Alabama Limited Liability Company Managed?
In Alabama, the rights and obligations of the limited liability company owners are typically set out in two separate documents. The certificate of formation, formerly referred to as the articles of incorporation, is filed with the probate office and secretary of state to form the LLC. Very little information is required for the certificate of information. Since the certificate of formation becomes public record after filing, it usually includes nothing more than the required information including the name of the LLC, the organizer, the name of the registered agent, the address of the registered and whether the LLC is a series LLC.
