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February 2015 Archives

THE PRESIDENT’S 2015 TAX PROPOSALS ARE TO CHANGE PERMANENT ESTATE TAX LAWS HE MADE IN 2012

President Obama wants to back out of the deal he made with Congress in 2012 for permanent estate tax law changes made at that time. Obama wants to go back to to the estate tax exemption levels and rates present in 2009. So his budget proposal includes additional revenue assuming those changes. He is using this to support for his call for increased federal budget spending. These proposal include among others:

Restoring the estate, gift, and generation-skipping transfer (GST) tax parameters in effect in 2009.  As noted above, this proposal has been on the President’s radar for quite some time now. In 2009, the top tax rate was 45%. The exemption amounts were $3.5 million for estate and GST taxes, and $1 million for gift taxes, with no indexing for inflation. Portability of the deceased spouse’s unused estate and gift tax exemptions would remain available. Additionally, prior donors would not have to worry about a clawback for estate and gift taxes incurred by reason of the exemption’s decrease.

Eliminating the stepped-up basis at death and treating transfers of appreciated property as sales. Under this new proposal, the donor or deceased owner of an appreciated asset would realize a capital gain at the time the asset is gifted or bequeathed to another. The gain would be taxable income to the donor or the deceased’s estate. There are several exclusions, deductions, and other rules which would be implemented along with this proposal. 

Modifying the annual gift tax exclusion.The proposal would eliminate the present interest requirement for §2503(b) annual exclusion gifts. However, there would be an annual limit of $50,000 (indexed for inflation) per donor on certain types of transfers that would qualify for the annual gift tax exclusion, including most transfers in trust.   

Read about this at Bloomberg BNA Estate Tax Blog at Bloomberg Estate tax Blog
 
William Wombacher, your Central Illinois Certified Elder Law Attorney (CELA) and Social Security Disability Specialist. I'll help you!   http://www.wombacherlaw.com
 
Serving Peoria, East Peoria, Peoria Heights, Pekin, Dunlap, Chillicothe, Morton, Washington, Metamora, Canton, Galesburg, Lacon, Henry, Bloomington, Normal and surrounding cites and counties of Peoria, Tazewell, Woodford, Fulton and  Knox Counties in Central Illinois.


Disruptions Mount As Illinois Shifts Medicaid Patients To Managed Care

Officials at the Illinois Department of Healthcare and Family Services say they have tried to avoid disruptions of care as the state shifts 2.2 million of its 3.1 million Medicaid patients to managed care, a system in which the state pays a fixed amount for each patient instead of reimbursing providers for each test and treatment. But some patients are reporting difficulties keeping their doctors and confusion navigating plans as they try to make the shift.The reports include wrong information on websites for insurance plans and hospitals; hours on the phone with insurers, hospitals and a state contractor who helps with enrollment; conflicting letters in the mail; changes to prescriptions, and other frustrations. Some doctors say the state is reassigning their patients to new offices and has created new administrative requirements that burden their practices, delay care for patients and slow payments from insurers. “I hope this works out and is better for patients and more efficient for the state, but right now it’s been extremely challenging for all parties,” said Dr. Donald Luyre, a vice president of the Illinois Academy of Family Physicians and CEO of Elmhurst Clinic.The 2011 law required 50 percent of the state’s Medicaid population to be enrolled in managed care by Jan. 1 of this year. Illinois had enrolled about 1.6 million as of Feb. 1, said Department of Healthcare and Family Services spokesman John Hoffman. Parker has said the department plans to enroll 600,000 more this spring.
Officials have said the change will improve patient care and stabilize spending in a budget that is projected to grow to about $20 billion for fiscal year 2015. Managed care’s per-patient payments encourage providers to try to keep people healthy, which in turn should reduce costly emergency room visits and inpatient hospital stays, proponents of the system say.Read about this in a copyrighted story by Wes Ventelcher of the Chicago Tribune date February 10, 2015 reprinted at http://kaiserhealthnews.org/news/disruptions-mount-as-illinois-shifts-medicaid-patients-to-managed-care/
William Wombacher, your Central Illinois Certified Elder Law Attorney (CELA) and Social Security Disability Specialist. I'll help you!   http://www.wombacherlaw.com
 
Serving Peoria, East Peoria, Peoria Heights, Pekin, Dunlap, Chillicothe, Morton, Washington, Metamora, Canton, Galesburg, Lacon, Henry, Bloomington, Normal and surrounding cites and counties of Peoria, Tazewell, Woodford, Fulton and  Knox Counties in Central Illinois.