Private Annuities for Asset Protection
Annuities are often used in connection with Medicaid planning to protect assets in the event earlier planning was not undertaken.
Serving the Elderly and Their Families throughout Massachusetts
In the case of a single person, a gift of half of the individual’s assets with an annuity for the balance can protect 50% of that person’s assets. The terms of the annuity that are required by Medicaid in order to carry out this technique are not commercially available, so a private annuity must be utilized.
In the case of a married couple, the excess resources over the $101,640 cap can be protected using an annuity. Here, a commercial annuity may be utilized but, depending upon the nature of the excess resources (such as a vacation home or hard-to-value tangible personal property), a private annuity may be utilized.
There is no limit on the amount of assets that can be protected using an annuity technique.
If you have questions about private annuities and how it affects Medicaid eligibility, send us an e-mail or call 617-523-1555 or toll free 888-759-5109. Free initial consultation with an experienced lawyer.
