Dale M Krause
Expert
When an elder law attorney advises a client on how to spend excess assets to qualify for Medicaid benefits to pay for a long-term stay in a nursing home, it's essential to choose the right tool. After being involved in crisis Medicaid planning for over 30 years, I strongly recommend using a Medicaid Compliant Annuity (MCA) over a DRA Compliant Promissory Note (PN).
The MCA is an insurance product backed and regulated by the insurance industry. The scheduled monthly payments will go out on time without any questions or issues, providing peace of mind and stability for the client and their family.
On the other hand, the PN is an intrafamily transaction backed by only the payor's good intent. In many cases, the monthly payments go awry, or worse, never get paid, and the formalities of the design are lost after the conference with the elder law attorney ends.
In summary, when considering which tool to use to spend excess assets to qualify for Medicaid benefits, it's best to opt for an MCA due to its reliability and stability.
The MCA is an insurance product backed and regulated by the insurance industry. The scheduled monthly payments will go out on time without any questions or issues, providing peace of mind and stability for the client and their family.
On the other hand, the PN is an intrafamily transaction backed by only the payor's good intent. In many cases, the monthly payments go awry, or worse, never get paid, and the formalities of the design are lost after the conference with the elder law attorney ends.
In summary, when considering which tool to use to spend excess assets to qualify for Medicaid benefits, it's best to opt for an MCA due to its reliability and stability.
