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  • Amber Hinds

Protect Your Assets While Still Qualifying For Medicaid Benefits


Purchasing a Medicaid compliant annuity can be a great way to protect your assets while still qualifying for Medicaid benefits to cover long-term care expenses. However, it's important to understand the rules and regulations surrounding these types of annuities before making a purchase.


First, it's important to note that Medicaid is a joint federal and state program, and each state has its own rules for what constitutes a compliant annuity. In general, a Medicaid compliant annuity must meet the following criteria:


It must be irrevocable and non-assignable. This means that once the annuity is purchased, the funds cannot be withdrawn or transferred to someone else.


It must have a fixed term. The term must be equal to the life expectancy of the annuitant or less.


It must pay out all of the funds within the term. This means that there cannot be any residual value left at the end of the term.


It must name the state as the primary beneficiary. This is to ensure that any remaining funds in the annuity will be used to reimburse the state for any Medicaid benefits that were paid out.


It's important to consult with a financial advisor and an elder law attorney before purchasing a Medicaid compliant annuity. They can help you understand the rules and regulations in your state, and make sure that the annuity you purchase meets all of the requirements.


Also, make sure that the annuity you purchase is from a reputable insurance company and is backed by the state's guarantee association, in case the insurance company becomes insolvent.


In conclusion, Medicaid compliant annuities can be a great way to protect your assets and still qualify for Medicaid benefits, but it's important to understand the rules and regulations surrounding these types of annuities before making a purchase. Make sure to consult with a financial advisor and elder law attorney, and only purchase from a reputable insurance company.


If you have questions or aren’t sure what to do next, contact us at https://www.ashber.com/form for a free quote!

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