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
When you have a senior client seeking Medicaid benefits, existing annuities can pose a problem. Certain annuities may be deemed a countable asset, while others may count as a divestment. In some cases, your client’s annuity may be sold on the secondary market, and they can use the resulting funds to purchase a Medicaid … Continued
UPDATE: This matter has been referred to the Supreme Judicial Court in Massachusetts and is set for argument in February. The Executive Office of Health and Human Services is arguing the sole benefit rule does not apply in the case of Mondor’s and Castle’s annuities and should instead name the Commonwealth of Massachusetts as … Continued
In a recent case out of Massachusetts, a trial court held that MassHealth must be named the primary beneficiary on annuities purchased by the community spouse of a Medicaid applicant. Prior to this decision, practitioners relied on the Dermody decision to avoid naming the state as a beneficiary on Medicaid Compliant Annuities in Massachusetts … Continued
While many individuals may outlive their Medicaid Compliant Annuity (MCA) term, some may pass away before the contract term ends. So, what happens then? Well, it depends on a few important factors, including who owns the annuity, who is listed as the primary beneficiary, and what state you’re in. If you have a client … Continued
If you’ve been following along with the Krause blog, you may already be aware that Michigan is a unique state in terms of how they treat transfers of assets for the sole benefit of the community spouse. In particular, the state’s Medicaid manual, the Bridges Eligibility Manual (BEM), did not distinguish between the viability … Continued
Chances are, if you’ve used a Medicaid Compliant Annuity (MCA) in Medicaid planning for senior clients, you’ve probably heard of the “Name on the Check Rule” strategy. This strategy is based on a rule used by state Medicaid agencies to determine to whom the income belongs. That is, if the community spouse’s name is on … Continued
The Michigan Department of Health and Human Services (DHHS) has issued a proposed rule that would evaluate transfers by a Medicaid applicant or their spouse to a trust established for the benefit of the applicant’s spouse for potential divestment penalties. This proposed rule change appears to be in response to the Hegadorn v. Department … Continued
As you navigate long-term care planning with your senior clients, you have some important decisions to make. And one of those decisions is choosing a trustworthy partner to support you with products, services, and education designed to guide you through the long-term care planning process. In order to help you make an informed decision, … Continued