Annuities in Medicaid Crisis Management
An annuity is basically an agreement between an individual and an insurance company where in exchange for the person giving the company a lump sum payment, the company agrees to provide that person periodic payments over the course of a lifetime. These agreements are a key tool in cases involving senior couples where one spouse is looking at emergency placement in a nursing home and the other spouse will be remaining in the marital home or at some other residence. By taking the couple's assets and turning them into an annuity for the well spouse, a person's hard earned savings or a portion thereof at least can be protected to preserve their legacy. Medicaid puts limits on the ill spouse's income and assets. But while it also puts limits on the well spouse's assets it does not put a cap on their income. Therefore, by taking the ill spouse's liquid assets (ie. savings account, cash on hand, checking account) and converting them to income for the well spouse, the assets are no longer subject to seizure by the government. This is a very complicated process so if you have questions about medicaid crisis management or have a loved one who is suddenly looking at paying for long term care, please contact the Consalo Law firm in downtown Orlando, Florida for help. Here you always speak to an attorney never a paralegal or staff member.