Latest news with #beneficiary
Health Line
5 days ago
- Health
- Health Line
Divorced Spouse Eligibility for Medicare
You're eligible for Medicare if your current or former spouse has worked in the United States and paid taxes for at least 10 years. Whether or not you'll pay a premium for Part A depends on a few more factors. Original Medicare includes Part A, which is hospital insurance, and Part B, which is medical insurance. Once you qualify for Part A, you can also sign up for Part B. If you're married or were married to someone who meets the eligibility criteria, you should still qualify for Original Medicare, even if you don't meet the requirements yourself. That said, depending on some criteria, you may have to pay a premium for Part A. Read to learn how you can qualify for Medicare after divorcing a beneficiary spouse and what you need to know about potential costs. Can a divorced spouse get benefits from Medicare? Generally, you're eligible for Medicare if you're over 65 or younger and receive Social Security Disability Insurance (SSDI) as long as you've worked in the United States and paid taxes for at least 10 years. However, if you're divorced and ineligible for Medicare, you may still qualify for Medicare through your former spouse's eligibility, provided your marriage lasted at least 10 years. Similarly, if you're widowed, you can qualify for your deceased spouse's Medicare if you are currently single, were married for at least 9 months before their passing, and they qualified for Social Security benefits. How do I qualify for divorced spouse benefits? If you were married to your beneficiary spouse for at least 10 years, you're also eligible for Medicare. However, most people don't pay a premium for Part A. Whether you'll have to pay it depends on your former spouse's work and tax history as well as a few other factors. You can receive Medicare Part A without any cost at the age of 65 based on your former spouse's work history if you fulfill these requirements: Your marriage lasted a minimum of 10 years. You're currently not married. Your former spouse is at least 62 years old and qualifies for Social Security or Railroad Retirement Board (RRB) benefits. You qualify for Social Security benefits through your former spouse's work record, even if you haven't applied for them yet. If your former spouse has passed away, you may still be eligible for premium-free Part A as a divorced surviving spouse if: You're 65 years old or older, or you're younger and meet disability eligibility criteria. Your marriage lasted at least 10 years. You're currently unmarried. Your former spouse had sufficient work history under Social Security or in a Medicare-covered government job. If you don't meet these criteria, you can still get Part A by paying a monthly premium during specific enrollment periods. Even if eligible through your former spouse, you must enroll separately. How much does Medicare cost if I'm divorced from my spouse? Even with premium-free Part A, you'll still have to meet a deductible before you get coverage. In 2025, this is $1,676. Once you're eligible for Part A based on your former spouse's eligibility, you are then eligible to purchase Medicare Part B (medical insurance) for a monthly premium, which in 2025 starts at $185. You then also have the option of signing up for Medicare Advantage (Part C), which is an alternative to Original Medicare (parts A and B), and for Medicare Part D, which covers prescription drugs. The costs of these privately run plans vary by plan. As with Part A, each spouse must enroll and pay for their own Medicare Part B, C, or D plan. Takeaway Original Medicare consists of parts A and B. If you're divorced from someone who meets the eligibility criteria, you should still qualify for Original Medicare as long as your marriage lasted 10 years, even if you don't meet the requirements yourself. However, depending on how your former spouse qualifies for Medicare, you might need to pay a premium for Part A. After obtaining Part A, you can enroll in the other parts of Medicare. The information on this website may assist you in making personal decisions about insurance, but it is not intended to provide advice regarding the purchase or use of any insurance or insurance products. Healthline Media does not transact the business of insurance in any manner and is not licensed as an insurance company or producer in any U.S. jurisdiction. Healthline Media does not recommend or endorse any third parties that may transact the business of insurance.
Medical News Today
6 days ago
- Health
- Medical News Today
What should caregivers know about Medicare?
When a person cares for someone eligible for Medicare, it's important to ensure they have the right permissions, information, and contact details to help manage their care Medicare's different coverage rules is important for caregivers, but there are also some other things to consider, such as enrollment periods, when to review coverage, and whether financial help may be before these things, it's essential a person has the right medical permissions to manage their loved one's care. This caregiver guide will help people navigate Medicare and provide some important contact the right Medicare permissionsMedicare cannot discuss anything with anyone other than the beneficiary unless they have the correct permissions. This includes discussing everything from medical information to claims and ensure a person has the right permissions, the beneficiary must complete the authorization to disclose personal health information release form, which is also available in Spanish.»Learn more:Becoming a healthcare power of enrollment periodsMedicare has various enrollment periods to become familiar enrollment periods are:initial enrollment period (IEP)open enrollment period (OEP)general enrollment period (GEP), also called Medicare Advantage open enrollment period (MA-OEP)special enrollment period (SEP)Initial enrollment period (IEP)Everyone eligible for Medicare has a 7-month initial enrollment period (IEP).During this time, they can enroll in Original Medicare, which includes Part A inpatient hospital coverage and Part B outpatient medical IEP:starts 3 months before a person's 65th birth monthcontinues throughout their 65th birth monthends 3 months after their 65th birth monthOpen enrollment period (OEP)Medicare's OEP runs between October 15 and December 7 each open enrollment, people can change their Medicare coverage. For example, they can:swap from Original Medicare to a Medicare Advantage planswap from Medicare Advantage to Original Medicareenroll in, leave, or switch Part D prescription drug planschange from one Medicare Advantage plan to anotherGeneral enrollment period (GEP)If people miss their IEP, they can enroll during the GEP, which runs between January 1 and March 31 each year. However, they may have to pay a late enrollment penalty unless they are eligible for a special enrollment a person already has a Medicare Advantage plan, they can change from one Medicare Advantage plan to another or leave a Medicare Advantage Plan and return to Original returning to Original Medicare, people can also choose to join a stand-alone Medicare Part D prescription drug plan to ensure their medications are enrollment period (SEP)If a person misses their IEP, they may be able to enroll during a special enrollment period or are several reasons a person may qualify for a SEP, including:having alternative coverage that is coming to an end, such as through an employerreturning to the United States after living abroadtheir plan's Medicare contract ending or changing»Learn more:Medicare enrollment to know plan documentsCaregivers can familiarize themselves with the Medicare & You handbook, which Medicare updates every handbook details general Medicare coverage rules, costs, plan rules, and any changes that affect coverage for the new calendar also find information on a person's rights, appeals processes, and where to get answers to common Medicare a person has a Medicare Advantage plan, caregivers should ensure that the private insurer administering the plan has sent the plan documentation, which details its own plan rules and the coverage options assistanceMedicare offers people and their caregivers educational help and support when navigating the healthcare support includes:Principle illness navigation services: This care management service helps people understand specific medical conditions and guides them through the healthcare system they care management services: This service covers condition-specific management for complex chronic conditions that may result in hospitalization, physical or cognitive decline, or end-of-life care management services: If a person has two or more chronic conditions that they expect to last for at least 1 year, Medicare may pay for a healthcare professional to help manage their care specifically for these care services: To try and avoid unnecessary tests, services, and medical errors, Medicare offers care coordination services to ensure medical information is shared across a person's healthcare team, including with the facilities involved in their care. This ensures it is the most effective care possible. Coordinated care services include: Accountable care organizations (ACOs) include doctors, healthcare professionals, hospitals, and healthcare facilities. They all accept Original Medicare and work together to coordinate a person's care. ACO Realizing Equity, Access, and Community Health (ACO REACH) helps different kinds of primary care doctors and specialists work together to improve healthcare quality and results under Original services may be available based on a person's exact needs. To find out more, caregivers can contact Medicare or the person's plan servicesBoth Original Medicare and Medicare Advantage plans offer many free preventive services. This includes services that do not require payment of out-of-pocket costs like deductibles, coinsurance, and list is comprehensive and may not include all available options, particularly if someone has a Medicare Advantage plan, as these plans typically include additional services that Original Medicare does not assistanceMedicare may be able to offer some help to those with low income and options may include:Medicare Savings Plans (MSPs): There are four different MSP types, each offering different savings. The programs are: Qualified Medicare Beneficiary (QMB) programSpecified Low-Income Medicare Beneficiary (SLMB) programQualifying Individual (QI) programQualified Disabled and Working Individual (QDWI) programExtra Help: This program helps people with the costs of their prescription Medicaid is a joint state and federal program that helps with healthcare costs. Some people may be dually eligible for both Medicare and Medicaid. Sometimes, Medicaid may cover some or all of the costs that Medicare does not local programs may also help with healthcare costs, so caregivers should always check with the beneficiary's local state department for informationCompiling a list of contacts can help caregivers know who to contact and when. They can start by compiling a list of their loved ones:family doctor or primary care doctornearest hospital, clinic, or other healthcare facilitynearest or preferred pharmacyOther important contacts include:Medicare800-633-4227 (TTY: 877-486-2048)Lines are open 24/7, except for some federal mailing addressMedicare Contact Center OperationsPO Box 1270Lawrence, KS 66044milConnect800-538-9552 (TTY: 866-363-2883)Alternatively, use this helpful web tool to find a local contact details are for members of the military and can help them identify military benefits and locate local military benefits Retirement Board (RRB)877-772-5772 (TTY: 312-751-4701)Automated services available 24/7Social Security Administration (SSA)register, enroll, and manage accounts via the SSA those unable to access online services: 800-772-1213 (TTY: 800-325-0778). Lines are open between 8 a.m. and 7 p.m. local time each Health Insurance Assistance Program (SHIP)877-839-2675This service offers tailor-made Medicare and other health insurance advice.U.S. Department of Veterans Affairs (VA)health benefits hotline: 877-222-8387Lines are open between 8 a.m. and 8 p.m. ET on can support Medicare beneficiaries in many ways, and it is vital to ensure they have all the information they need or know where to find the right permissions to manage Medicare on behalf of a beneficiary should be the first thing a caregiver does so that they don't experience any barriers when discussing about the different Medicare enrollment periods, coverage options, rules and procedures, and the financial help that may be available will ensure caregivers have everything they need to manage any Medicare plan.
Forbes
11-07-2025
- Business
- Forbes
Dynamic Estate Planning: Creating Plans That Evolve With Life's Uncertainties
By building flexibility into your estate planning structures from the beginning, you create a framework that can adapt to whatever uncertainties lie ahead. Life rarely follows the script we write. Marriages end, children's circumstances change, family businesses evolve, and tax laws shift. Yet many estate plans are written as if these variables will remain constant forever. At my firm, we help families optimize their legacy by building flexibility into their estate planning structures from the start. The Problem with Static Estate Plans Traditional estate planning often creates rigid structures that become outdated as life unfolds. Consider these common scenarios: Building Flexibility Into Your Estate Plan A revocable living trust can serve as the cornerstone of flexible estate planning. Unlike a will, which only takes effect at death, a living trust: Key Strategy: Fund your trust with assets that don't already have beneficiary designations. Remember, beneficiary designations on retirement accounts, life insurance, and transfer-on-death accounts supersede your will and do not go through probate. A revocable trust only avoids probate on the assets in the name of the trust; it does not save taxes. The probate process can vary greatly depending on the state in which you are domiciled. Modern trust language can include provisions that automatically adjust to changing circumstances: With potential tax law changes on the horizon, consider these adaptive approaches: Education and communication: Build incentives into trust distributions that can adapt to beneficiaries' life stages: Modern estate plans must address digital assets: Include specific provisions for digital asset management and ensure your successor trustees have the technical knowledge or advisory support needed. Dynamic estate planning requires ongoing attention: Effective dynamic estate planning requires coordination among: Personally, I coordinate with a client's professional team to ensure their estate plan remains aligned with their comprehensive financial plan. Trust the Estate Planning Process Estate planning isn't a one-time event—it's an ongoing process that should evolve with your life. By building flexibility into your estate planning structures from the beginning, you create a framework that can adapt to whatever uncertainties lie ahead. The key is working with advisors who understand that your estate plan is not just about avoiding taxes—it's about creating a lasting legacy that serves your family's changing needs across generations.
Yahoo
30-05-2025
- Business
- Yahoo
Inheritance tax: How it works and how it differs from estate tax
An inheritance tax is levied when a beneficiary inherits assets from the estate of someone who died. There is no federal inheritance tax, but five states currently levy this tax: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. (Iowa was a sixth state on that list until it ended its inheritance tax starting in 2025.) The federal government does levy an estate tax, as do 12 states and Washington, D.C. Maryland is currently the only state to assess both an estate and an inheritance tax. Unlike an estate tax, which is paid by the estate before the assets are distributed, an inheritance tax is paid by the beneficiary on the assets' value. The tax is levied if the person who died lived in a state that has an inheritance tax, even if the beneficiary lives in a state without an inheritance tax. The inheritance tax rate, as well as which assets it applies to and which beneficiaries must pay it, varies by state. Each state has its own rules (more on that below). In states with an inheritance tax, beneficiaries pay a tax on the value of their inheritance. Often, the inheritance tax is a progressive tax, which means the tax rate increases with the value of the bequest. (A progressive tax system employs a series of tax rates, whereas a flat tax system generally uses one tax rate for all income levels.) Some states assess different tax rates depending on the asset received, or the beneficiary's relationship to the person who died. Close relatives may be exempt from the inheritance tax, or may pay a lower rate. State laws vary and are subject to change. In 2024, the highest inheritance tax rate among the five states (remember, states usually levy a range of inheritance tax rates) ranged from 10 to 16 percent, with New Jersey and Kentucky having the highest top tax rate of 16 percent, according to a report by the Tax Foundation. Some states, including Nebraska, New Jersey and Maryland offer an inheritance tax exemption, which allows the beneficiary to avoid the inheritance tax if the asset's value is less than the exemption amount. For example, in Nebraska, immediate relatives are given a $100,000 exemption — that is, close relatives pay a 1 percent tax on the value of inherited assets exceeding $100,000. In New Jersey, spouses, domestic partners, children and grandchildren are exempt from paying inheritance taxes. Some beneficiaries, including siblings of the person who died, pay inheritance tax rates of 11 to 16 percent after a $25,000 exemption. Other beneficiaries, including aunts, uncles and cousins, pay rates of 11 to 16 percent on the entire inheritance, without the benefit of an exemption amount. Maryland offers an inheritance tax exemption for property worth less than $1,000; the state also exempts surviving spouses, children, grandchildren, great-grandchildren, parents and grandparents from paying an inheritance tax. Need an advisor? Need expert guidance when it comes to managing your money? Bankrate's AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals. In 2025, five states impose an inheritance tax: Kentucky Maryland Nebraska New Jersey Pennsylvania The highest inheritance tax rates range from 10 percent in Maryland to a high of 16 percent in Kentucky and New Jersey. Until 2025, Iowa had the lowest rate: 2 percent. However, Iowa abolished its inheritance tax, starting in 2025; beneficiaries won't pay inheritance taxes in Iowa beginning Jan. 1, 2025. It's easy to confuse the inheritance tax with the estate tax, but the two are quite different. The inheritance tax is imposed on the individual who inherits assets from someone else. An estate tax is imposed directly on the decedent's estate before the assets are distributed to beneficiaries. The federal government imposes an estate tax of 18 to 40 percent on assets above a specific exemption amount. That amount is $13.6 million in 2024, and almost $14 million in 2025. In addition to the federal government, 12 states and the District of Columbia charge a state estate tax. For this reason, some estates pay both a federal and state estate tax. Like the federal government, states that have an estate tax generally offer an exemption amount. In 2024, state estate tax exemption amounts ranged from $1 million in Oregon to $13.6 million in Connecticut, according to the Tax Foundation. In addition to the District of Columbia, these 12 states impose an estate tax: Connecticut Hawaii Illinois Maine Maryland Massachusetts Minnesota New York Oregon Rhode Island Vermont Washington While beneficiaries have limited options for reducing taxes after receiving an inheritance, they should check state rules to see if they qualify for any exemptions that would help them reduce or avoid the tax altogether. However, those who plan to leave an inheritance to loved ones should consider the following strategies to reduce or avoid inheritance tax for their beneficiaries. Take advantage of the annual gift tax exclusion, which allows you to transfer wealth while you're still alive, without paying taxes. For 2025, the annual gift tax exclusion is $19,000 per recipient (up from $18,000 in 2024). In 2025, individuals can gift $19,000 to as many people as they choose without triggering the need to file a gift tax return. If you're married, each spouse can gift $19,000. For example, in 2025, a couple with four children can gift a total of $152,000 to their children ($19,000 per spouse to each child) without triggering the gift-tax-return requirement. If you exceed that annual limit for any one beneficiary, it's likely you'll need to file a gift tax return, Form 709, with your Form 1040. (And married couples, especially, should consider consulting with a tax professional when employing a 'gift splitting' strategy.) But keep in mind that you still won't owe gift taxes unless you exceed your individual lifetime estate and gift tax exemption, which currently is almost $14 million. Another way to avoid the inheritance tax is to choose to reside (or own property) in a state that doesn't impose the tax. Currently, five states impose an inheritance tax. Choosing to forego these states means you're helping your beneficiaries avoid the inheritance tax altogether. (Inheritance tax is levied based upon where the decedent lived.) Meeting with an estate professional to create a plan to eliminate or reduce inheritance or estate taxes is wise. Making a plan can remove a heavy burden at the time of death.
