Page 16 THE REVERE ADVOCATE – FRIDAY, AUGUST 25, 2023 Eastern Equity Partners donates $5,000 to the RHS Patriots Football Team By Tara Vocino E astern Equity Partners presented the Revere High Football Team parents club and players with a $5,000 donation to support the team’s needs for the upcoming season at Harry Della Russo Stadium on Wednesday afternoon. V VACATION HOMES AND RENTAL PROPERTIES Shown from left to right: Police Chief David Callahan, Ward 2 City Councillor Ira Novoselsky, Acting Mayor Patrick Keefe, Jr., Head Coach Louis Cicatelli, donors Jamie and Lorenzo Russo, Councillor-at-Large/Veterans Service Department Director Marc Silvestri and Jennifer Keefe. acation homes are deemed a countable asset when applying for MassHealth long-term care benefits. If you rent out the vacation home and you are reporting a profi t, MassHealth will not count the vacation home as an asset as the vacation home will be deemed essential for self-support under 130CMR 520.008(d). MassHealth Estate Recovery Unit will still place a lien on the property in order to seek reimbursement for MassHealth benefi ts paid on behalf of the institutionalized spouse. However, the reimbursement is based on the Medicaid rate paid to the nursing home by MassHealth, which is often 50% to 60% or so of the private pay rate. This means the buildup on the lien will be a lot smaller than the cash depletion based upon the private pay rate assuming the vacation home was not rented out generating a profi t which would otherwise make it a non-countable asset. The same would be true Eastern Equity Partners Project Manager Lorenzo Russo and Eastern Equity Partners CEO Jamie Russo donated $5,000 to the Revere High School Football Patriots at Harry Della Russo Stadium on Wednesday. (Advocate photos by Tara Vocino) for rental property generating a profi t. The rental property would also be a non-countable asset based upon being essential to self-support. Your principal residence is a noncountable asset if you check off the box on the MassHealth application stating that you intend to return home from the nursing home. In a married couple situation, once the nursing home spouse is approved for MassHealth benefi ts, the home can then be transferred to the at home spouse without there being a disqualifying transfer. Then, the at home spouse could transfer to an irrevocable Trust in order to start the fi ve-year look back period if he or she wishes to do so. Whether you are dealing with a vacation home, rental property or principal residence, if you decide to transfer either piece of real estate to an irrevocable Trust, once the deed is executed, the five-year look back period would begin to run. At the end of the fi ve-year period, those assets would not be considered countable assets for MassHealth eligibility purposes, and MassHealth would not place a lien on any of the properties. Upon the death of the Settlor(s) of the irrevocable Trust, probate would also be avoided. MassHealth can only collect against the probate estate. Keep in mind that if the Medicaid rate is, for example, $7,500 per month, the amount of the estate recovery lien that would build up each month would be reduced by the monthly income being paid to the nursing home by the nursing home spouse. For example, if the nursing home spouse had Social Security income of $2,000 per month, pension income of $1,000 per month and net rental income per month of $2,000 per month, for a total of $5,000 in income per month, the net amount of MassHealth’s estate recovery lien that would build up each month would only be $2,500. This would most likely lead to a decision not to sell any of the real estate which would result in potentially signifi cant capital gains taxes. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. For Advertising with Results, call he Adv cate Ne spapers call The Advocate Newspapers at 781-286-8500 or Info@advocatenews.net Players gave a round of applause when the check amount was unveiled.
17 Publizr Home