Key Rates and Resource Levels in Tax & Medicaid Law


Volume 2, Issue 1 April 1, 2019

The firm of DiGiorgio Law Firm, PLLC specializes in providing estate planning and elder law services to our clients, their families and their family owned businesses.

The legal services offered by DiGiorgio Law Firm, PLLC include, *Wills and Trusts     *Estate and Tax Planning *IRS Audits & Appeals *Long Term Care Planning *Medicaid Eligibility Planning & Medicaid Recertification *Probate Administration *Elder Law *Special Needs Planning *Guardianship Applications *Asset Protection Planning *Business Entity Formation *Business Succession Planning *Buy Sell Agreements* and *Real Estate Closings *Vehicle & Traffic Law Matters.

In this issue of the DiGiorgio Law Firm, PLLC Estate Planning Newsletter we highlight some of the key rates and resource levels in the Tax & Medicaid law which are in effect for 2019.

  1. Key Tax Rates in effect for 2019
  2. Top Marginal Corporate Tax Rate 21%;
  3. Tax Rates on Capital Gains: 0% for individuals with income up to $39,375 and couples up to $78,750; 15% for individuals up to $434,550 and couples up to $488,850; 20% for individuals over $434,550 and couples over $488,850;
  4. Top Income Tax Rates: 10% individuals up to $9,700 and couples up to $19,400; 12% individuals up to $39,475 and couples up to $78,950; 22% individuals up to $84,200 and couples up to $168,400; 24% individuals up to $160,725 and couples up to $321,450; 32% individuals up to $204,100 and couples up to $408,200; 35% individuals up to $510,000 and couples up to $612,350; 37% individuals over $510,300 and couples over $612,350;
  5. Standard Deduction $12,200 for an individual and $24,400 for couples;
  6. Federal Exemptions for Estate, Gift and GST Tax increased to $11,400,000 in 2019;
  7. Top Marginal Estate Tax Rate: 40%;
  8. Federal Gift Tax Annual Exclusion remains at $15,000;
  9. New York State Exemption from Estate Tax $5,740,000 as of January 1, 2019;
  10. Top Marginal NY Estate Tax Rate: 16%;
  11. Wages Subject to Social Security Tax in 2019: increased from $128,700 to $132,900;
  12. Medicaid Resource & Income Eligibility Levels for 2019
  13. Resource Levels for Chronic Care Medicaid (Nursing Home) $15,450 for the Medicaid Recipient & the greater of $74,820 or ½ of combined spousal resources up to $126,420
  14. Income for Chronic Care: $50 for the recipient and $3,160.50 for the community spouse;
  15. Resource Levels for Community Care: $15,450 Individual or $22,800 for a couple;
  16. Income Levels for Community Care: $859 Individual or $1,267 for a couple
  • Some Quick Facts about Deeds Transferred to Children with a Retained Life Estate
  • You retain the right to life use of the property;
  • Your children become partial owners on transfer;
  • The transfer may result in a period of ineligibility for Chronic Care (nursing home) Medicaid purposes if nursing home admission is required within 5 years of transfer;
  • If sold during life you children may incur a capital gain on their portion of the sales proceeds;
  • If sold during life your portion of the sales proceeds will be subject to spenddown for Medicaid purposes;
  • If held until death your children will receive a step up in basis for tax purposes
  • On your death, the transferred property will not be subject to probate and should not be subject to recovery for Medicaid purposes.

Have you updated your estate plan lately?  Keep up with the changing times and let us provide you with a free review your current estate plan to see if it has kept up with changes in the law and your lifestyle.


 Long Term Care Planning Workshops April 18, 2019, May 16, 2019 and June 20, 2019:  *Options for paying for Long Term Care; *Health Care Proxies, Wills & Powers of Attorney; *Medicaid Eligibility Requirements for Home Care & Nursing Home Care; & *Medicaid Asset Protection Trusts.

Probate Avoidance & Estate Planning Workshops May 2, 2019, June 6, 2019 and July 11, 2019: Topics include: *Surrogate’s Court (Probate) Procedures &Timelines for decedents dying with & without a Will; *Basic Estate Planning Documents, such as Wills, Health Care Proxies & Powers of Attorney; *Probate avoidance techniques including Revocable Trusts.

Except as otherwise advertised above, all Workshops will begin at 5:30pm, take place at the law office of DiGiorgio Law Firm, PLLC and last approximately 1 hour.  Please call to RSVP as all workshop dates and times are subject to change.