Wealth & Risk Management Blog

William Byrnes (Texas A&M) tax & compliance articles

Court Clears Path for Medicaid-Compliant Short-Term Annuities

Posted by William Byrnes on October 1, 2015


Medicaid compliant annuities can play a powerful role in a client’s long-term care plan if used carefully ThinkAdvisorso that the client does not run afoul of the strict Medicaid resource rules. Clients have often purchased these annuities only to find themselves challenged on the grounds that the annuities represent available resources that can prevent Medicaid eligibility.

In recent weeks, however, a Third Circuit appeals court has taken an important step toward ensuring that long-term care expenses can be met using annuities—even if the annuity in question is a short-term annuity purchased specifically to cover expenses incurred during periods when the client is ineligible for Medicaid coverage.

Read the full analysis at Think Advisor

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