Accelerating the Date of Eligibility

Accelerating the Date of Eligibility

1. While timely payment of debts is an important step in establishing the date of eligibility, it is often possible to accelerate such date by the prepayment of a future debt or by acquiring excludable resources.

2. Frequently in the planning process an income tax liability is generated due to the liquidation of assets. Typical examples are the redemption of E or EE bonds, sales of securities and the withdrawal of funds from an IRA. Payment of income taxes on these transactions on April 15 could delay the date of eligibility. Counsel should confer with applicant’s accountant to discuss maximum payment of estimated taxes.

3. If applicant is married and community spouse is residing in the marital home, monies can be utilized for mortgage payments or for home repairs.

4. Monies can be used to purchase excludable resources such as an irrevocable burial arrangement – N.J.A.C. 10:71-4.4(b)9.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.


© February 2009, Post #5