I live in New Jersey. My dad is in an assisted living facility. He is permitted to have no more than $2,000 in resources....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
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...
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...
Loretta Morris Williams is a certified elder law attorney by the National Elder Law Foundation. Ms. Williams was admitted to the Council of Advanced Practitioners, National Academy of Elder Law Attorneys (NAELA) in 2012. She serves as President of the Virginia Academy of Elder Law Attorneys. Ms. Willia...
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.
Medicaid Rules, etc