Ask Our Experts
By: Compiled by Carole Fleck; Source: AARP Bulletin Date Posted: 2006-11-12 12:53:00-05:00
The AARP Bulletin 's Ask Our Experts column provides answers to important questions affecting older Americans. Read below for this month's column, or review our archive of previously published questions and answers sorted by topic. (Note: Recent news or changes to regulations may affect the guidance offered in this previously published column.)
Submit your own question to the Ask Our Experts column via our easy-to-use online form.
Q. My mother died in 1995, and my father never applied for her Social Security benefits. Is it too late or could he still apply?
A. In general, when people are eligible for more than one Social Security benefit, they receive the higher benefit amount—not the two benefits added together.
So, if your father is receiving benefits, and the amount is higher than what he’d receive based on his deceased wife’s work record, there would be no point in applying for her benefits. However, if he would receive more based on his wife’s work record, your father can apply at any time for her Social Security benefits. But those benefits would not be retroactive from the time of her death.
For information, visit the Social Security Administration website. —Expertise provided by Laurel Beedon
Q. My mother receives Medicaid assistance and lives in subsidized housing for older adults in New York state. She will inherit about $80,000 soon. Will this affect the financial assistance she receives?
A. Housing assistance and Medicaid are separate programs and have different rules and eligibility requirements. Since Medicaid assistance is based on the value of a person’s assets, an $80,000 inheritance would likely cause her to be dropped from the program—at least until the asset is spent down. Normally, a person who qualifies for Medicaid has no more than $2,000 in assets.
As for housing assistance, there are many programs at the federal, state and local levels. Your mother should ask the housing provider where she lives about the eligibility requirements that relate to her program.
Generally, most housing assistance is based on income. So if your mother invested that $80,000 at 5 percent interest, for example, her annual income would increase by $4,000. To get housing assistance, an individual must typically earn no more than 50 percent of a region’s median income. So it’s possible that your mother could remain eligible for subsidized housing even if she no longer qualifies for Medicaid. — Expertise provided by Andrew S. Kochera
Q. Are premiums for a long-term care insurance policy deductible from federal income tax?
A. Premiums paid for private long-term care insurance are deductible if you meet certain conditions.
First, your medical expenses must exceed 7.5 percent of your adjusted gross income and all deductions must be itemized. Second, the long-term care policy must be classified as federally “tax-qualified” based on laws established by the Health Insurance Portability and Accountability Act. The amount that can be deducted is based on the age of the policyholder.
For specific information, visit the Internal Revenue Service online. — Expertise provided by Enid Kassner
Share
preview