No such animal... where did you come up with the notion that something like this exists?
M'caid and assets are all about ownership of the asset. Also if there are assets and the owner gives them away / transfers to a 3rd party in order to qualify for M'caid, then there is a 5 yr lookback period... so no way to beat the system here except to use an irrevocable funeral trust... but not necessarily with an annuity. The only imaginable scenario would be a limited pay WL ins policy owned by an irrevocable funeral trust and funded by an annuity annually for say a 7 pay, hence the assets are out of the name and control of the M'caid beneficiary. However this is more of a life insurance vehicle versus an annuity, per say.
NickH
New Member
F&G / Old Mutual use to, which they called "Senior Safeguard" option rider for their SPIA. There were a lot of rules you have to be aware of & Most agents would want to get the recommendation from an Estate Planning attorney.
I'm using past tense because i'm pretty sure they cancelled the product.
I'm using past tense because i'm pretty sure they cancelled the product.
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Refer to these threads:
Medicaid Compliant Immediate Annuities - Who Issues Them?
Medicare Compliant Annuities
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scagnt83 said:
What are you using the search function or something? I just thought that was there to balance the look of the webpage.
SportsNut is incorrect. You can write a Irrevocable funeral trust if you want to pay for a funeral.. But, there are still a few options for Medicaid friendly annuities that are exempt from the 5yr Lookback. Phoenix does a lot of the business correctly, but Great American has the option as well.
You're not going to be able to put the funds in a deferred annuity and pull out the lump sum cash value, it's going to be a SPIA to turn the lump sum into a payment stream.
Is there a stay at home spouse that the client is trying to take care of? Are they just trying to pass on money to the beneficiaries? If this is the case then you want a LIFE product that has the Medicaid friendly language in it instead of the SPIA.
What State?
You're not going to be able to put the funds in a deferred annuity and pull out the lump sum cash value, it's going to be a SPIA to turn the lump sum into a payment stream.
Is there a stay at home spouse that the client is trying to take care of? Are they just trying to pass on money to the beneficiaries? If this is the case then you want a LIFE product that has the Medicaid friendly language in it instead of the SPIA.
What State?
- Thread starter
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Sorry with the Holidays I haven't checked this in a few days. You can call me or email me and I can get back to you faster. It's going to look like this. Mediciad is cracking down and since there is no stay at home spouse for the payment stream to go to, the payments are going to end up going to the Client. So if the payment is $3K/mnth and LTC at the nursing home is $5K, Medicaid will cover the $2K (assuming client is approved). But, after the client passes away the remaining payment stream will go to the estate of the insured. Mediciad in many states is starting to go after the estate to "recapture" the funds.
Since the Client's goal is to pass the funds to the beneficiaries and he's going to drain the accounts for LTC needs anyway, the better option might be to write the Life product that has the No Lookback for Mediciad on it. Depending on the issue age of the client you can get a 3-5-7-10yr period certain payout to the beneficiaries upon death of client to pass on the funds like he wants without having to worry about the 5yr Lookback period.
Earlier posts are an option too and he can write a funeral trust, but your maxed out at $15K for Massachusetts for the amount you can put in the Funeral trust. Of course you could write funeral trusts on the kids too, but would the beneficiaries want the money to spend how they wish or do they want their funeral paid for. Most choose the former rather than later option.
Thanks,
Scott
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