General Credit Hours:1
CDs/DVDs may not ship until 4-6 weeks after the original program date below.
Original Program Date: September 25, 2025
CLE Accreditation End Date: March 31, 2027
Asset transfers are made either for Fair Market Value or not. The federal Medicaid and SSI policy on Personal Services Contracts (PSC) is based on the very same published rules on prepaying for In-kind Support and Maintenance (ISM). There is no reason why we should use one (PSC) and not the other (ISM) when you consider that the PSC generates taxable income, and ISM has zero federal income tax consequences. It is primarily a useful tool for elderly or disabled people living in the community, not in public facilities, but is preferable to using tax loss PSCs or pooled SNTs with fees for creation, trustee file opening fees, and 3% annual fees, and avoidance of Medicaid liens at death since the transfer is complete during the claimant’s life.
In this webinar, our speaker, David Lillesand, will explain the ISM Contract and other permissible prepayments and the criteria necessary to use these in place of tax-disfavored PSCs and more expensive pooled trusts. He will review the Medicaid and SSI rules and guidelines for the creation of these prepayments by contract, and what can be prepaid as part of these contracts, as well as providing a sample for how ISM contracts work.
60 Minutes
Fair Market Value using PSC, ISM, and other FMV Prepayments
David Lillesand
Course Number:9428
Credit Hours:
General Credit Hours:1
Elder Law Credit Hours:1
Wills, Trusts, and Estates Credit Hours:1