by MWC Legal Group
There has often been confusion about the role or purpose of annuities in Medicaid planning. Is there a place for annuities or is this planning tool obsolete?
Annuities are not appropriate for every situation. In fact, annuities are inappropriate in some Medicaid cases. However, annuities are an extremely valuable planning tool for many individuals facing the high costs of long term care.
As an example, assume a single person has $400,000.00, is entering a nursing home facility and anticipates a lengthy stay (over three years). With the proper use of an annuity, this person can often save $200,000.00 from the costs of nursing home care. This planning option is available immediately before entry or after entry into a nursing home facility. This planning tool is also often appropriate for situations involving married individuals.
If you are facing a possible entry into a long term care facility, you should seek appropriate legal advice so that you understand the options that may be available to you.
May 30, 2017
