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TAX ISSUES IN PERSONAL INJURY RECOVERIES

by Thomas D. Begley, Jr., Esquire, CELA   Origin of the Claim Test The determining factor as to how a litigation settlement or award will be treated for tax purposes is the origin of the underlying claim. The Supreme Court has held, “[t]he origin and character of the claim with respect to which an expense…

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THE PERSONAL INJURY ATTORNEY’S GUIDE TO MEDICAID

by Thomas D. Begley, Jr., Esquire, CELA              There are many pathways to Medicaid in New Jersey.  Each one has different income requirements and resource limits, some have transfer of asset penalties, some require disability, and some require that a personal injury settlement be placed in a Special Needs Trust to maintain eligibility while…

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TEN COMMON MISTAKES IN MEDICAID PLANNING AND ESTATE RECOVERY

by Thomas D. Begley, Jr., Esquire, CELA Ten Common Mistakes in Medicaid Planning The single biggest mistake is waiting to plan.  As a general rule, the sooner Medicaid planning begins the better the result.  If significant assets are transferred, there is a five-year lookback, and the five-year lookback does not begin until the assets are…

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MEDICAID RECOVERY FROM PERSONAL INJURY CLAIMS

by Thomas D. Begley, Jr., Esquire, CELA   Lien v. Settlement The State of New Jersey has a lien against a personal injury settlement.  The Division of Medical Assistance and Health Service (DMAHS), Beneficiary Administrative Action Unit recovers money from legally-responsible third parties.  Recovery is for Medicaid benefits including New Jersey Family Care.  The individual…

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