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Will My Grandmother's Annuity Affect Her Medicaid Eligibility?
- October 17th, 2019
Q
My grandmother is the beneficiary of an annuity left by my grandfather. She has kept it because she wants it to go to her two children when she dies. However, she recently fell and broke her hip. She's recovering okay, but considering she's almost 90, we think a nursing home isn't too far into her future. The only income she has is Social Security of $792 a month. Will the annuity prevent her from getting Medicaid? Can a nursing home take that annuity?
A
Yes, an annuity is like any other investment asset and must be liquidated and spent down before Medicaid will pick up the cost of your mother’s care. It may feel like the nursing home is “taking” the annuity, since it will likely be spent paying for your grandmother’s care, but in fact no one is actually taking it. Your grandmother will simply have to use the resource to pay for her care out-of-pocket. Once it is spent down, she will be eligible for Medicaid to take over the cost.
That said, your grandmother may be eligible for some ways to preserve at least some of the value of the annuity. We would recommend that your family consult with a local elder law attorney as soon as possible. To find an attorney near you, go here: https://www.elderlawanswers.com/elder-law-attorneys.