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Hernando Today

Receiving Social Security Benefits Not A Requirement To Obtaining Medicare

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By ADON TAFT, Life to the Fullest

Hernando Today

Published: October 27, 2008

Updated: 10/27/2008 06:50 pm

QUESTION: As a retired government worker, I have retained my government health care insurance. While I am about to turn 65 when I understand that I will be eligible for Medicare, I do not plan to take the Social Security benefit (which I know will be reduced because of my government pension) until I reach the full retirement age of 66.
My questions are whether I can keep my health care insurance as my primary insurance, and do I have to take Social Security now to get Medicare?

G.B.
Brooksville

ANSWER: Since you already are retired, when you automatically get Medicare at age 65 your government health care insurance will become secondary insurance. If you still were working, Medicare would be your secondary insurance (with a few exceptions).
You do not have to be receiving Social Security benefits in order to receive Medicare. You merely have to be eligible (that is, meet the requirements for eligibility which means a total of 10 years of earnings on which you paid Social Security taxes).

QUESTION: In a case where a man dies and his widow and daughter receive Social Security survivor benefits, what should be done when circumstances change? The mother was jailed and the daughter was in the custody of her maternal grandmother who received the girl's survivor check and provided her a home and care.
When the mother was released, the daughter returned home but the grandmother continues to receive her Social Security check and the mother says she does not need that money. The grandmother does spend some of the money on her granddaughter but it does appear that the remainder is spent for the grandmother.
Does the grandmother have to give an accounting of how those funds are spent? Can the daughter have a bank account on her own or with someone else to receive the Social Security deposits directly?

F. P.
Brooksville

ANSWER: The guardian — in this case the grandmother — must submit to the local Social Security office an annual accounting for the funds. It is not a detailed report. If a complaint is received by Social Security, an investigation would be instigated.
The minor daughter cannot receive the survivor's benefit check directly on her own. The paternal grandparents or any qualified and willing adult could serve as guardian for the purpose of receiving the Social Security check, possibly in a joint account. There are professional Social Security guardians who are paid a small fee for handling such benefit accounts.

QUESTION: I opened an Individual Retirement Account in a particular bank. The amount was to earn a certain percent in interest for eight years. Since then the bank has changed hands twice.
The quarterly statement no longer shows the account (which has retained the same number) is an IRA. And the new bank is suggesting a transfer of the funds into a new IRA account and says that there would not be any tax consequences.
Please advise me on this matter.

S.S.
Miami

ANSWER: First, be sure the interest rate on the new account would be the same or better. Then obtain a letter from the bank acknowledging that the existing account (probably a Certificate of Deposit) is an IRA and that a direct transfer is taking place without money being paid to you. There would be no tax consequences.

If you have questions about any issues connected with aging, except medical conditions, please write to Life to the Fullest, Hernando Today, 15299 Cortez Blvd., Brooksville, Fla. 34513, or send e-mail to adontaft@yahoo.com. Please include your name and address.

Adon Taft is a resident of Brooksville.

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