Medicaid Planning with the Family Farm or Cottage
In the not to distance past the largest obstacle to passing property to the next generation was estate and inheritance taxes, now those taxes are nearly non-existent. Last year, effective January 1, 2013 the Indiana Inheritance tax expired, and for tax year 2014, a decedent can have up to $5.34 before the estate tax is imposed. So unless a married couple has in excess of $10.68 million dollars, it is unlikely a penny of estate or inheritance tax will be paid.
So what is the largest obstacle to passing property to the next generation now? It’s the cost of long term care, i.e. the nursing home. Nursing home residents have to pay in excess of $70,000 a year to be in a place no one really wants to be.