What Happens to Social Security Benefits After Death #SocialSecurityBenefits
It’s a common question we get all the time. How do I handle Social Security since Dad has died? The Social Security Administration must be notified as soon as possible when a recipient dies. Usually notification is handled by the funeral director, however, if the funeral home doesn’t provide this service then the surviving spouse or other family member must contact Social Security. It cannot be done online but you can make a phone call to your local Social Security office or to 1-800-772-1213. Any benefits received for the month of death or any months after that must be returned. For example, if Dad died in January you must return the benefits paid in January and after. If benefits are paid by direct deposit you will need to contact your bank and request that any funds received for the month of death or later be returned to Social Security. If the benefits are paid by check then do not deposit the checks but return them to Social Security as soon as possible. Next month we’ll address the question of how much Mom will receive in survivor benefits after Dad's death.
Noticing Changes in Elderly Family Members
The holiday season is a time to connect or reconnect with family. We might visit with parents or other family members that we haven’t seen in some time and that’s when changes in their health become more noticeable such as: Weight loss Deterioration in personal hygiene Unusually dirty or messy home Unusually loud or quiet, paranoid or agitated behavior Local friends and relatives noticing changes in behavior Self-imposed isolation, stops attending activities Signs of forgetfulness such as unopened mail, piling newspapers, missed appointments, unfilled prescriptions Signs of poorly managed finances, such as not paying bills, losing money, paying bills twice Unusual purchases Then once the new year begins we go back to our daily routines. But, what can or should you do if you see any of these changes? There’s a lot actually that you can do. Next week we’ll go over some of the options available to you.
New Medicaid and VA Figures for 2016 #2016Medicaidnumbers
Each year, many of the programs that, as elder law attorneys, we deal with daily, such as VA Aid and Attendance and Medicaid, are adjusted for inflation through a cost of living adjustment. For 2016, the Social Security Administration announced that Social Security recipients will receive no increase, the third time this has occurred in the past decade. Because Medicaid and the VA Aid and Attendance program adjustments are tied to the same percentage increase, this means that those benefits will also have no cost of inflation adjustment. Here are the numbers you need to know for 2016. The Medicaid income cap will remain at $2199 per month. This number is the limit on income per month needed to qualify for most Medicaid programs. For Medicaid recipients whose income exceeds this limit a Qualified Income Trust (commonly known as a Miller Trust) must be used to achieve and maintain eligibility. The Community Spouse Resource Allowance (CSRA) will remain at $119,220. That is the maximum amount a healthy spouse may keep in countable assets (provided the married couple have at least that amount times 2 at the time the “snapshot of assets” is taken). The minimum CSRA is $23,844, meaning
Medicare Numbers for 2016 #Medicare2016
The Centers for Medicare and Medicaid has announced 2016 numbers for Medicare premiums, deductibles and coinsurances. Once again, the basic Medicare Part B premium will remain the same at $104.90. That number has not changed for the past 3 years. However, approximately 30% of beneficiaries will receive an increase in their premiums. They include people enrolled in Medicare but not yet receiving Social Security #SocialSecurity2016, new Medicare enrollees, seniors who have greater than $85,000 of income per year and those who are eligible for both Medicare and Medicaid. In 2016 the Part B premium will increase to $121.80 per month for those individuals not subject to the rate freeze. Individuals with income between $85,000 and $107,000 will pay $170.50, those with income up to $160,000 will pay $243.60, those with income up to $214,000 will pay $316.70 and those over $214,000 will pay $389.80 per month. Income is based on 2014 income tax returns and specifically the modified adjusted gross income number. If you have taken a lump sum from your IRA or otherwise received a one time amount that is counted as income and that has pushed your income to a higher level than normal, you can expect
Major Changes to Social Security on the Horizon (Part 2) #SocialSecuritychanges
Last week we were discussing some of the changes to Social Security that will be happening in 2016. Let’s look at some more. Under current rules, if a married beneficiary applies for Social Security benefits between age 62 and full retirement age (currently 66), he/she will receive whichever is the highest benefit – their own or their spouse’s. Waiting till full retirement age to claim your own benefits allows yours to grow by 8% a year while you are collecting the spousal amount. That option will no longer be available to most beneficiaries. However, anyone who is 62 or older by the end of 2015 is exempt from this change. They’ll still be able to apply for spousal benefits at age 66 while allowing their own benefits to grow. Remember, however, that since the file and suspend strategy #fileandsuspend will be eliminated, this will only work if the other spouse is receiving Social Security benefits. This strategy requires careful consideration. Couples whose benefits are roughly equal may not want to go this route if they want to allow both of their benefits to grow. On the other hand, if they have unequal benefit amounts it may make sense for the
Major Changes to Social Security in 2016
Budget negotiations between Congress and President Obama have resulted in some significant changes to Social Security that will take away some of the strategies that married couples can use to increase their benefit payouts. The “File and Suspend” strategy will be gone by May, 2016. Under this option the higher wage earner files for his/her benefits at full retirement age (currently 66) and then immediately suspends the claim. This allows the benefit amount to continue to increase by 8% until age 70 at which point the wage earner reclaims the benefit, netting a higher amount. By filing and suspending at 66 the lower earning spouse can collect spousal benefits, usually one-half of the amount at age 66. The rule change will eliminate this option so that no one will be able to collect when a claim is suspended. Anyone currently receiving benefits under this strategy will be grandfathered and will continue to collect. This strategy is also still an option for those considering it until the change becomes effective, probably in May, 2016. The file and suspend strategy also has been a way to collect benefits retroactively. In the normal instance, Social Security does not permit going back more than