2026 Medicaid Numbers
In my last 2 blog posts, I updated you on some of the new Social Security, Medicare and VA Aid and Attendance numbers for 2026. The recently announced Social Security cost of living adjustment (COLA) of 2.8% follows a 2025 increase of 2.5%. Many other federal programs are tied to the Social Security COLA. These include Medicaid and the VA Aid and Attendance programs. This week we will review the 2026 Medicaid numbers. Medicaid’s programs that cover long term care have a strict income cap or limit. For 2026 that number is $2982 per month. Anyone with more than $2982 per month of gross income (before taxes and Medicare and health insurance premiums are deducted) must use a Qualified Income Trust in order to qualify for Medicaid. Medicaid recipients must also have less than $2000 of countable assets. For a single applicant, a home is an exempt asset up to a certain limit as long as the applicant is living in it. In 2026 the limit is $1,130,000 of equity. Anything above that amount is countable. For a married couple where at least one of the spouses is living in the home there remains no limit. In other words, the home is exempt in that case no matter the value. In the case of a
2026 VA Aid and Attendance Numbers
In this week’s post I will review the updated numbers for 2026 for the VA program that provides a benefit to wartime veterans and their spouses. Known as the VA Aid and Attendance program, this benefit provides a special pension to eligible applicants who need long term care. The maximum pension amount is tied to the same cost of living adjustment as Social Security, which for 2026 is 2.8 %. For a single veteran with no dependents the maximum pension one can receive goes up to $2424 per month. For a married veteran the maximum for 2026 will be $2874. For a widowed spouse who needs care the 2026 maximum will be $1558 per month. The Aid and Attendance program is a needs based benefit. This means that to be eligible one must meet a financial test. Different than Medicaid, the VA uses a net worth test. It calculates the applicant’s (in the case of a married couple both spouse’s) annual income and adds that to the countable assets. This is known as the net worth. For 2026 the net worth must be no more than $163,699 to qualify for this benefit. Existing VA A&A recipients should have received a letter from the VA informing them of the new amount they
2026 Social Security Cost of Living Adjustment
When we get to the end of the year, it’s time to look ahead to what numbers will change in 2026 for the government programs from which our clients receive benefits. It starts with the Social Security Administration, which announces its cost of living adjustment (COLA). Other government programs then adjust their numbers, often using the same COLA as Social Security. Since inflation hit a 40 year high in 2022, the rate has dropped. After a COLA of 8.7% in 2023, the adjustment dropped to 3.2% for 2024 and 2.8% in 2025. For 2026, the Social Security administration has announced another 2.8% increase. Inflation, has continued to decline this year and consequently so has the COLA. This bump up will be first be seen in January, 2026 monthly payments. Medicare numbers will also change next year, although not tied to the same adjustment. Similar to last year, the standard Medicare Part B premium that most people pay will increase. In 2026 While that number will increase by almost 10% to $202.90 per month.. Certain Medicare deductibles and copays will increase next year. The Part A hospitalization deductible will increase by $60 to $1736 and the copay for days 61 through 90 is expected to increase from $419 to $434 per day. Medicare covers
Adding a Child’s Name to Parent’s Account – Part 3
In this third blog post of three, I continue discussing the pros and cons of adding a child as an additional owner of a parent’s account. As I explained last week, if Mom adds one child as co-owner but has 3 children amongst whom she wants to split everything evenly when she dies, there is potential gift tax to be paid by the co-owner child in splitting the account with the other children. One way to avoid this problem could be to add all the children as co-owners so when Mom dies there is no need to make any gifts to “even things out”. All the remaining co-owners assume ownership of the account equally. Gift tax issues are thereby avoided, however, there is another potential problem illustrated by a recent call to our office. Mom had added her 2 children as co-owners on her account but one of them died before Mom. The deceased child’s 1/3 share now passed by law to Mom and to the other child. Why is this a problem? Because New Jersey has an inheritance tax which is based on the relationship of each heir to the person who died. Parents and children (of the deceased) are Class A heirs, exempt from the tax. Siblings, however,
Adding Child’s Name to Parent’s Account – Part 2
In last week’s blog post I addressed a common question in our practice - how best to add a child to a parent’s bank account. There are two options - giving the child access as agent under power of attorney or adding the child as a co-owner. This week I explain the pros and cons of each choice. As I explained last week, the power of attorney must specifically reference the action to be taken by the agent in order for a financial institution to accept it. Adding a co-owner to the account requires both owners to sign paperwork with the financial institution reflecting the new owner. An agent under power of attorney can only act as long as the principal is alive. Once Mom passes away, by law the power of attorney is terminated. To access this account after death, the child must gain access thru the probate (if there is a will) or estate administration (if there is no will) process. While this may sound like something to avoid, there are other considerations. By adding the child as a co-owner, if Mom dies first the child will receive at least 1/2 and probably the entire account proceeds by operation of law no matter what the will or
Adding Child’s Name to Parent’s Account – Part 1
In this week’s blog post, I address a question we encounter often in our elder law practice. Should an elderly parent add a child’s name to their account and if so, how can or should it be done? Mom is having difficulty handling her finances, paying her bills etc. or maybe she just would rather not do it any longer and is happy to have her son take over the responsibility. In order for me to write checks on her behalf or move money from one account to another, I need to be authorized to do that. I need the financial institution to allow me access by “adding” me to the account. But, what does that actually mean? Legally, there are two ways to provide such access. One option is that Mom can designate me as a co-owner on any accounts she chooses. A second option is to execute a power of attorney allowing me to access the account(s) as her agent. She can do this by way of a power of attorney in which she can specifically choose the account(s) or she can execute a power of attorney that allows me to access any and all accounts that she has. The written document - a power of attorney -