Countless people find themselves in situations where they must transition a loved one into a nursing home. This process is emotionally taxing and can be quite costly. According to Genworth, a private room's average cost in a nursing facility is approximately $8,821 per month. Typically, these payments can drain the individual's assets rapidly, leaving them and their loved ones with financial uncertainty. To assist with these costs, many turn to Medicaid. Medicaid is a Federal program administered by the States and is available to all who qualify. To qualify, you must meet stringent income and asset requirements, which can be complicated and often takes an elder law attorney's expertise during the Medicaid application and planning process. Qualifications vary by state and require a great amount of attention to detail to ensure that the confined individual qualifies. Financial products such as life insurance with funeral trusts and Medicaid Compliant Annuities are frequently used instruments by experienced Medicaid planners to help accelerate eligibility for benefits.
MCAs are single premium immediate annuities (SPIAs) that pay an annuitant over a fixed period of time. These products may help individuals accelerate their financial eligibility for Medicaid benefits.
While there are a variety of factors that make an annuity compliant with each state’s Medicaid requirements. There are a few key points to remember:
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