Appellate Division Reverses Medicaid Denial in Our Client’s Annuity Case
/*! elementor - v3.19.0 - 07-02-2024 */
.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px...
Medicaid annuity planning is alive and well in NJ
When a person applies for Medicaid under the NJ MLTSS program after having made gift transfers during the most recent 5 years, there will likely be a penalty period in which Medicaid will not pay for the care that this person needs (unless the transfers were exempt, such as transfers to a spouse or disabled child). This transfer penalty is mandated by federal law, and the greater the amount...
Third Circuit rejects State’s claim that short-term annuities can’t meet Medicaid requirements
The Third Circuit federal Court of Appeals has just issued a precedential decision concerning Medicaid planning strategies that involve the purchase of short-term, immediate, irrevocable, unassignable annuities. Zahner decision The case is called
ANABEL ZAHNER, by her agent Raymond E. Zahner; ESTATE OF DONNA C. CLAYPOOLE, by Mitchell R. Claypool, Executor; CONNIE L. SANNER, by her agent Jamie...
A QLAC for IRAs is not a “Medicaid Annuity.”
This year, the IRS adopted final regulations which allow an IRA or 401K account holder to direct 25% of the qualified funds into a new structure called a Qualified Longevity Annuity Contract (QLAC). This is a deferred-income annuity contract purchased from an insurance company with qualified funds. The portion of qualified assets used to purchase the QLAC will not be subject to the Required...