Medicaid and Tax Mazes

Gelila Selassie counseled a woman who was recently hospitalized. She wanted to know about Medicaid coverage laws because she is concerned that future care will decimate her assets. Because the client’s daughter is providing in-home care for her now, Gelila helped them prepare a “care agreement.” This way, the daughter is compensated fairly and the mother’s assets will keep her independent as long as possible. Paying reasonable rates for this care avoids the strict “transfer of asset” penalties imposed by Medicaid.

Heidi Muller represented a couple whose Social Security income is being garnished by the IRS for back taxes. This leaves the pair with less than $1,400 per month on which to live. Heidi prepared and filed an Offer in Compromise and a Collection Information Statement with the IRS. She documented the couple’s living expenses, and requested a reduction in the garnishment.

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