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