An Elder Care Attorney’s Guide to Elder and Estate Planning: Using an Annuity to Help the Spouse of a Medicaid Applicant

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Annuities are sold to individuals who seek stable and guaranteed retirement income. A lump sum is paid in exchange for a steady stream of income at a later date, usually at the holder’s retirement. Be wary however, of any representation that an annuity helps a person qualify for Medicaid. Any deferred annuity purchased as a planning measure will be considered a countable asset for Medicaid planning purposes. For more information click here. divorce attorney in newark nj, family law attorney newark nj, child support attorney newark nj


 What is an Annuity?

According to Investopedia, an annuity is a financial product that pays out a fixed payment to an individual and is used primarily as an income stream for retirees. The period of time when an annuity is being funded and before payouts begin is referred to as the accumulation phase. When the payments commence, the contract is in the annuitization phase. Annuities are funded with a lump sum payment or through payments during a fixed period of time. For more information click here. family law hackensack nj, family law firm hackensack nj, family law attorneys in hackensack nj

The Community Spouse

In order to qualify for Medicaid coverage in a nursing home, the applicant spouse cannot have more than $2,000 of countable assets. The at-home spouse is referred to as the community spouse can have one-half of the couple’s combined “countable” assets up to a maximum of $123,600. The maximum amount is set annually. Ask an Elder Law Attorney NJ for the maximum amount in 2019 and beyond. For more information click here. family lawyer hackensack nj, family attorney hackensack nj, lawyers in hackensack nj

The effect of this rule is that when one spouse goes into the nursing home, the at-risk spouse must spend down the couple’s combined assets in order to receive Medicaid or long term care.  The community spouse, however, may be able to protect more of the couple’s assets with the purchase of a Medicaid compliant annuity. Ask an Elder Law Attorney NJ about a Medicaid compliant annuity. For more information click here. lawyers in hackensack nj, divorce lawyers in hackensack nj, attorney in hackensack nj

Protections for the Community Spouse in New Jersey

Below is a handy chart that summarizes the protections afforded the community spouse in New Jersey. Keep in mind that these figures are subject to change. To learn more about the protections available to you and your family, contact an Elder Law Attorney in NJ to discuss Medicaid planning for you. For more information click here. lawyers in hackensack new jersey, divorce attorney in hackensack nj, elder lawyers hackensack nj, family lawyer Jersey City nj, family attorney Jersey City nj

Community Spouse Resource Allowance (CSRA):                 
●        Minimum: $24,720
●        Maximum: $123,600

Increased CSRA:
●        Permitted. New Jersey follows the income-first rule.

Annuities:
●        Medicaid compliant annuities are permitted.

Monthly Maintenance Needs Allowance:
●        Minimum: $2,030
●        Maximum: $3,090

If You are Ready to Get Started Planning Your Long Term Health Care, Call the Medicaid Planning NJ Attorney Today

Nearly half of all seniors will become incapacitated before they pass. Do not put your family and finances at risk. Learn how to preserve assets against unnecessary fees and taxes. Above all protect the community spouse and avoid spending everything down to qualify for Medicaid. For more information click here. jersey city family lawyers, family law attorney jersey city nj, lawyers in Jersey City nj, divorce attorney in Jersey City nj

The Giro Law Firm is a New Jersey and New York law firm located in Hackensack, NJ that handles a wide range of legal matters that affect the elderly and disabled populations, including retirement, guardianship, health care, long term care planning, Social Security, Medicare/Medicaid, among other legal services. To request a consultation with Asset Protection Lawyers near me, click here or call (201) 690-1642. 

For more information click here. divorce lawyers in Jersey City nj, attorney in Jersey City nj, lawyers in Jersey City new jersey, senior citizen lawyer jersey city

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