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Case Studies

Case Studies. James (Jim) Swain, JD Founder and CEO of the Academy of VA Pension Planners, LLC Valerie Peterson, JD Executive Director of ElderCounsel, LLC. Case #1. WWII Veteran (85) and Spouse (deceased) Veteran is in a Memory Care Unit Annuity has $150,000 of gain

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Case Studies

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  1. Case Studies • James (Jim) Swain, JD • Founder and CEO of the Academy of VA Pension Planners, LLC • Valerie Peterson, JD • Executive Director of ElderCounsel, LLC

  2. Case #1 • WWII Veteran (85) and Spouse (deceased) • Veteran is in a Memory Care Unit • Annuity has $150,000 of gain • Total Net Worth = $495,000 • House = $110,000 • IRA = $ 25,000 • Annuity = $350,000 • Liquid assets = $ 10,000

  3. Case #1 • Total Current Income = $2,500 • Total Current UME = (4,881) • IVAP = $ 0 • Can qualify for Pension

  4. Case #1 • After Plan is Implemented • Total Current Income = $4,469 • Total Current UME = (4,881) • IVAP = $ 0 • Can qualify for Full Pension

  5. Case #1 – Recommendations 1. Income tax analysis for IRA withdrawal $1,500 2. VAPT (Veterans Asset Protection Trust) for assets 7,000 3. Transfer House to IDGT 4,000 4. Purchase SPIA with $120,000 of annuity – 5 year payout 5. Leave $25,000 in Ira and $10,000 in joint account with children 6. Transfer excess assets to VAPT 7. Withdraw $30,000 from annuity TOTAL INVESTMENT $12,500

  6. Case #1 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $98,600 2. Reduces future income tax liability on annuity 45,000 3. Start clock for Medicaid BENEFITS $143,600 ROI (return on Investment) 1,149%

  7. Case #2 • WWII Veteran (85) and Spouse (84) • Veteran is in a Memory Care Unit • Spouse is in good health • Long Term Policy paying $3,000 per month • Total Net Worth = $667,300 • House = $350,000 • IRA = $ 91,000 • Liquid assets = $226,300

  8. Case #2 • Total Current Income = $9,391 • Total Current UME = (6,701) • IVAP = $2,689 • Can not qualify for Pension

  9. Case #2 • After Plan is Implemented • Total Current Income = $6,701 • Total Current UME = (6,701) • IVAP = $ 0 • Can now qualify for Full Pension

  10. Case #2 – Recommendations 1. Income tax analysis for IRA withdrawal $1,500 2. VAPT (Veterans Asset Protection Trust) for assets 7,000 3. Transfer House to IDGT 4,000 4. Reduce LTC Payments to stretch-out LTC payments 5. Leave $30,000 in joint accounts with children 6. Transfer excess assets to VAPT TOTAL INVESTMENT $12,500

  11. Case #2 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $116,940 2. Stretch-out LTC Payments 3. Reduces income tax liability on IRA 15,000 4. Start clock for Medicaid BENEFITS $116,900 ROI (return on Investment) 1,056%

  12. Case #3 • WWII Veteran (85) and Spouse (59) • Veteran is in a Memory Care Unit • Spouse is in good health • 3RD marriage for veteran and 2nd for spouse • Total Net Worth = $1,212,000 • Houses = $ 310,000 • IRAs = $ 439,000 • Liquid assets = $ 463,000

  13. Case #3 • Total Current Income = $7,580 • Total Current UME = (4,696) • IVAP = $2,884 • Can not qualify for Pension

  14. Case #3 – Beginning Assets

  15. Case #3 - Revised • After Plan is Implemented • Total Current Income = $2,725 • Total Current UME = (4,696) • IVAP = $ 0 • Can now qualify for Full Pension

  16. Case #3 – Revised

  17. Case #3 – Recommendations 1. Divorce – give IRA to Spouse in settlement $3,500 2. VAPT (Veterans Asset Protection Trust) for assets 7,000 3. Transfer Veteran’s House to IDGT 4,000 4. Family Meetings to work out divorce settlement 2,000 5. Keep $20,000 in joint account with children 6. Transfer excess assets to VAPT TOTAL INVESTMENT $16,500

  18. Case #3 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $98,640 2. Move income tax liability on IRA to Spouse rather than split non-taxable assets 126,900 2. Start clock for Medicaid BENEFITS $225,540 ROI (return on Investment) 1,367%

  19. Case #4 • WWII Veteran (85) and Spouse (84) • Veteran had stroke being care for at home • Spouse is in fair health • Total Net Worth = $818,300 • Houses = $350,000 • IRAs = $242,000 • Liquid assets = $226,300

  20. Case #4 • Total Current Income = $2,801 • Total Current UME = (2,187) • IVAP = $ 614 • Can qualify for a portion of Pension

  21. Case #4 – Beginning Assets

  22. Case #4 - Revised • After Plan is Implemented • Total Current Income = $4,620 • Total Current UME = (4,837) • IVAP = $ 0 • Can now qualify for Full Pension

  23. Case #4 – Revised Assets

  24. Case #4 – Recommendations 1. Personal Caregiver Agreement $2,500 2. VAPT (Veterans Asset Protection Trust) for assets 7,000 3. Transfer Veteran’s House to IDGT 4,000 4. Calculate IRA withdrawals 1,500 5. Purchase SPIA - $200,000 of IRA assets – 10 year payout 0 6. Withdraw $26,000 from IRA TOTAL INVESTMENT $15,000

  25. Case #4 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $116,940 2. Withdraw IRA without income taxes 67,500 3. Start clock for Medicaid BENEFITS $184,440 ROI (return on Investment) 1,230%

  26. Case #5 • WWII Veteran (85) never married • Veteran had stroke • He is in an ALF • Total Net Worth = $727,500 • Annuities = $707,500 ($313,000 gain) • Liquid assets = $ 20,000

  27. Case #5 • Total Current Income = $1,527 • Total Current UME = (5,081) • IVAP = $ 0 • Can qualify for Pension

  28. Case #5 – Beginning Assets

  29. Case #5 - Revised • After Plan is Implemented • Total Revised Income = $4,822 • Total Current UME = (5,081) • IVAP = $ 0 • Can now qualify for Full Pension

  30. Case #5 –Revised Assets

  31. Case #5 – Recommendations 1. Income tax analysis for annuity withdrawals $ 9,000 2. VAPT (Veterans Asset Protection Trust) for assets 7,000 3. Purchase SPIA - $359,000 of Annuity assets – 10 year payout 6. Withdraw $348,000 from annuities over 2 years TOTAL INVESTMENT $16,000

  32. Case #5 – Benefits to Client 1. Reduce income tax liability of annuities saves $313,000 2. Qualify for VA Pension (5 year benefit) 98,640 3. Start clock for Medicaid BENEFITS $411,640 ROI (return on Investment) 2,573%

  33. Case #6 • WWII Veteran (85) and Spouse (84) • Veteran had stroke in nursing home on Medicaid • Spouse is in Assisted Living • Total Net Worth = $207,500 • House = $100,000 • IRAs = $ 75,000 • Liquid assets = $ 32,500

  34. Case #6 • Total Current Income = $1,950 • Total Current UME = (3,756) • IVAP = $ 0 • Can qualify for a portion of Pension

  35. Case #4 – Beginning Assets

  36. Case #6 - Revised • After Plan is Implemented • Total Revised Income = $2,721 • Total Current UME = (3,756) • IVAP = $ 0 • Can now qualify for Full Pension

  37. Case #6 – Revised Assets

  38. Case #6 – Recommendations 1. Income tax analysis for IRA and annuity withdrawals $4,000 2. Put house in Spouse’s name and gift majority of equity 4,000 3. Purchase SPIA - $75,000 of IRA assets –6 year payout 0 TOTAL INVESTMENT $8,000

  39. Case #6 – Benefits to Client 1. Qualify for VA Pension (5 year benefit) $116,940 2. Preserve Medicaid Qualification ($6,000 x 5 years) BENEFITS $116,940 ROI (return on Investment) 1,462%

  40. Thanks for attending • Together we can help those that have built this country • James B. Swain, JD, MBA • Founder and CEO • Jim@Avapp.org • 678-461-7848/888-928-2779 • www.avapp.org

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