The Standard, an insurance carrier based in Portland, OR, recently announced it will be retiring its short-term fee-based Restricted Single Premium Immediate Annuity product as of May 15, 2023. This means the carrier will no longer be offering Medicaid Compliant Annuities (MCAs) with terms of 47 months or less. If you were using … Continued
Although many seniors have been financially planning for their retirement for decades, very few are prepared for the high costs associated with long-term care. While Medicaid crisis planning can offer a solution to those individuals who find themselves in a financial crisis, this scenario can be avoided altogether with a bit of pre-planning. Pre-Planning: … Continued
Choosing an appropriate term for your client’s Medicaid Compliant Annuity (MCA) hinges on several factors, including the client’s marital status, their health, or the type of account they need to spend down. By reviewing the components of each Medicaid spend-down strategy, attorneys and their clients can better understand what to consider when choosing an … Continued
The Medicaid Compliant Annuity (MCA) is an essential crisis planning tool designed to protect assets and accelerate Medicaid eligibility. However, in order to be Medicaid compliant, an MCA must be irrevocable, non-assignable, and actuarially sound. It must make equal monthly payments and name the state as the primary beneficiary in most cases. Let’s take … Continued
In a recent case out of Massachusetts, the state Supreme Judicial Court (SJC) heard oral arguments surrounding the application of 42 U.S.C. 1396p(c)(2)(B)(i), also known as the “sole benefit provision” and 42 U.S.C 1396p(c)(F)(i), the “beneficiary naming provision,” related to annuities. The argument focused on whether the Commonwealth must be named the primary beneficiary … Continued
When completing a Medicaid spend-down, one asset that may cause hesitation is how best to spend down the client’s IRA without incurring large tax consequences. In states where an IRA is considered a countable asset for Medicaid purposes, the solution may be converting the existing IRA to a tax-qualified MCA. Learn More: What … Continued
If you are new to Medicaid planning or just starting to incorporate Medicaid Compliant Annuities into your practice, the amount of information you are expected to take in can seem a bit overwhelming. That’s why we wanted to consolidate the top ten questions we receive most frequently in the hopes of answering some of … Continued
The last stage of completing a Medicaid crisis plan is submitting the Medicaid application. Completing and filing the Medicaid application can be a cumbersome and tedious process. To help alleviate some of the confusion, we wanted to share some tips with you regarding completing and submitting the Medicaid application to ensure your client can … Continued
When it comes to choosing between a Promissory Note or a Medicaid Compliant Annuity (MCA), there are many factors to consider when determining which spend-down strategy will best serve your client. Both tools must adhere to the specific conditions as set forth in the DRA of 2005 and, when structured and administered properly, both … Continued
Yesterday, the Massachusetts Supreme Judicial Court (SJC) heard oral arguments regarding the case of EOHHS of the Commonwealth of Massachusetts v. Linda Marie Mondor, et al. The arguments centered around whether the commonwealth must be named primary remainder beneficiary on MassHealth community spouse annuities, or if the annuity is for the sole benefit of … Continued