Medicaid Annuity

In most cases where you transfer an asset and it no longer has any value to the patient or the patients spouse if any that is considered a divestment for which there are penalties.

Medicaid annuity. A Medicaid Annuity is a type of insurance product called a Single Premium Immediate Annuity SPIAan agreement between the annuitant and insurance company where a lump sum of money is paid up front and that sum is paid back in smaller amounts over time. Medicaid annuities irrevocable funeral trusts. Medicaid Compliant Annuity Benefits for Medicaid Asset Protection Planning If your parent is a senior and preparing to enter into a nursing home because of failing health you need to know how to receive some type of financial aid to offset the cost of the nursing care that will be provided.

The unique aspect of a Medicaid compliant annuity is that it must pay out over the annuitants life expectancy only option. An immediate annuity allows a Medicaid applicant to take assets that normally would be counted towards Medicaids asset limit and turn them into non-countable assets. However Medicaid-compliant annuities are immediate annuitiespaid out immediately.

A Medicaid annuity is a way to help protect your financial assets while qualifying for Medicaid extended care or nursing home benefits. In such cases the annuity is usually short-term just long enough to cover the penalty period. That means the payout doesnt happen for some time.

We provide attorneys and individuals with products needed to protect assets and qualify for Medicaid benefits 8554716771. While plenty of companies offer immediate annuities not just any immediate annuity will work for Medicaid-qualification purposes the annuity must be a DRA Medicaid-compliant annuity. A Medicaid Compliant Annuity is a single premium immediate annuity SPIA that contains zero cash value and provides income to the owner.

But a Medicaid-compliant annuity is purchased to pay the nursing home through the penalty period. An annuity is a fixed sum of money thats usually paid every year indefinitely for the rest of a persons life. A Medicaid compliant annuity is used to convert assets into income to help bring the amount of countable assets down within the Medicaid asset limitations.

This intentionally creates a Medicaid penalty period per the 5-year lookback rules. Medicaid Compliant Annuity Plan Partial gift to intended heirs. Its a uniquely designed Single Premium Immediate Annuity SPIA or a deferred annuity that can be converted to a compliant SPIA.