medicaid-compliant-annuity.medicaidconsultants.com Open in urlscan Pro
2606:4700:3037::6815:2e9e  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Call us for a free intial consultation today and potentially save $100,000 or
more in nursing home costs. 1 (877) 21-Medicaid or 1 (877) 216-3342




MEDICAID COMPLIANT ANNUITY VS MEDICAID TRUST


WHEN BUYING A MEDICAID COMPLIANT ANNUITY KNOW TOTAL COMBINED INCOME


MEDICAID TRUST VS MEDICAID COMPLIANT ANNUITY

In addition to the discussed Medicaid compliant annuity, a Medicaid trust work
in a similar way. Some clients will prefer to use a Medicaid trust instead of an
annuity for two main reasons. The first reason is that some of the assets are
better protected in a trust which can help to avoid liquidation and tax
liabilities. The second reason is that there are very few attorneys that are
also licensed to use certain insurance products. This leads to the over reliance
on annuity trusts, which are very costly. Annuity best way to protect assets
such as 401(k) and IRA
Some attorneys will state that the annuity is the best way to protect assets
such as a 401(k) and IRA. The owner would be requires to incur all of the tax
liabilities that are associated with the distribution of the assets if these
plans were to be liquefied. However, it is possible to roll these assets over
into a Medicaid compliant annuity. The payout structure would then meet the
rules for Medicaid. The payout can occur over a period of time, which is usually
when the co-payments are considered to be a partially deductible expense. These
expenses can sometimes offset the tax liabilities.


MEDICAID COMPLAINT ANNUITIES WILL COMBINE WITH PENSION PAYMENTS AND SOCIAL
SECURITY PAYMENTS

Regardless of what the client has for assets, they must always be very careful
when dealing with combined monthly income. The income that is generated from a
Medicaid compliant annuity will combine with all other forms of income,
including pension payments and Social Security payments. It is important that
clients find a way to stay below the allowed income amount. The reason this is
important to know is because many people will purchase a large annuity in order
to qualify for Medicaid immediately. While this may seem like a good idea at the
time, it can be harmful. If the annuity generates too much income for the
client, they will be completely disqualified from Medicaid.


MEDICAID APPLICANTS SHOULD KNOW THEIR ENTIRE INCOME SOURCES BEFORE BUYING
MEDICAID COMPLIANT ANNUITIES

The goal behind purchasing a Medicaid compliant annuity is to become eligible
for Medicaid without having to spend down assets. It is important to be aware of
how much income the purchased Medicaid annuity will generate. If this amount,
combined with other income sources it will place the Medicaid applicant above
the income limits. Medicaid applicants should not purchase such a large annuity.
Instead, they may want to spend down some of their assets (eg. money) and
purchase the annuity with the rest. The smaller annuity will generate less
income, increasing the chances of remaining eligible for Medicaid benefits. This
is just another aspect of Medicaid planning that must be thought over before
acting. Medicaid income limits are very strict, so all clients must know what
their income will be when all of their sources are combined.
Read more information on Medicaid:
 * Medicaid asset
 * Medicaid Rules Purchasing Annuities
 * Medicaid Transfer Assets
 * Medicaid Gifting Rules
 * Medicaid Joint Accounts
 * Hide Assets from Medicaid
 * Medicaid Assets
 * Medicaid Home Equity
 * Medicaid Laws
 * Medicaid Annuity
 * Medicaid Income First Rule
 * Medicaid Long Term Care Insurance
 * Medicaid Look Back Period
 * Medicaid Life Estate
 * Medicaid Loan
 * Medicaid Deficit Reduction Act
 * Medicaid Case Study


Privacy Policy | Disclaimer | About Us | Contact Us | Sitemap | Google Profile

© Copyright 2007-2014 Estate Street Partners, LLC - Medicaid Consultants