I heard about something called a “Lady Bird deed” that could be useful if I need to apply for Medicaid. What e...Read more
The purchase of certain immediate annuities is not considered a transfer of assets by Medicaid. Buying these annuities can be a way to protect assets for the spouse of a nursing home resident, and sometimes for his heirs.
An immediate annuity is a contract with an insurance company under which the annuitant pays over a certain amount of principal in exchange for the insurance company’s commitment to pay out an income stream either for a specific number of years or for life. For instance, the annuitant may pay an insurance company $100,000 and receive back $21,000 a year for five years.
Local Elder Law Attorneys in Ashburn, VA
Attorney Samantha Simmons Fredieu is an associate at Hale Ball. Ms. Fredieu graduated magna cum laude from Vermont Law School where she was the symposium editor on the Vermont Law Review, a production editor on the Vermont Journal of Environmental Law, and a member of the Moot Court Advisory Board. She has clerked for...
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Jean Galloway Ball is certified in Elder Law by the National Elder Law Foundation. She is a 1977 honors graduate of the National Law Center, George Washington University, and she did her undergraduate work at the University of California at Berkeley, graduating Phi Beta Kappa in 1971. She is admitted to practice in Vir...
Under the Medicaid rules, if one spouse moves to a nursing home, he may become eligible when his and his healthy spouse’s assets have been spent down to a certain level. Qualified Medicaid annuities can be part of this spend down by transforming countable assets into income, which for the healthy (or “community”) spouse is unlimited.
The annuities must meet certain parameters, and each state treats them somewhat differently. In certain instances, also depending on the state, annuities can also be useful tools for single nursing home residents. For these reasons, it’s important that anyone considering this tool consult with a local elder law attorney first.
For more on annuities and Medicaid planning, click here.