“Are Medicaid annuities sound crisis-planning tools?”

“Are Medicaid annuities sound crisis-planning tools?,” by Jeffrey Levine, Financial Planning

 

Quote:

“At a high level, a Medicaid annuity is a tool that can allow a married couple to convert countable assets of the couple into the ‘ignored’ income of a healthy spouse. More specifically, when a married couple’s assets exceed the amount of countable assets they will be allowed to keep, they can ‘spend’ the excess assets by purchasing an annuity that pays income only to the healthy spouse. And since the healthy spouse’s income doesn’t prevent the institutional spouse from being eligible for Medicaid (thanks to the name on the check rule discussed earlier), the Medicaid annuity can be an effective way to help preserve the assets and maintain the healthy spouse’s future standard of living.”

 

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

How revolting to see Financial Planning publish an article urging Medicaid planning for higher income/asset families. And without mentioning private LTC insurance nor the access and quality deficiencies incidental to relying on welfare-financed nursing homes. Readers would be much better advised to follow the advice in my 2001 article titled “Long-Term Care Due Diligence for Professional Financial Advisers” for the Journal of Financial Planning.