Success Story: Asset Preservation for a Single Person

Three months ago, Van and Elaine Hughes placed Elaine’s mother Mary into a nursing home. They had been privately paying for Mary’s care for three months when they found out about Medicaid Information Resource. When they heard that strategies were available to preserve assets, they were interested, but had many questions and concerns.

The Hughes were reassured when they learned that every strategy we use to preserve assets are completely in keeping with the Florida Medicaid Guidelines. Here were the specifics of their situation:

Mary’s funeral arrangements had been prepaid, so all they had to do was sign an attorney-drafted irrevocable designation form in order for the funeral contract to be excluded as an asset. Since there were excess assets of $58,800, these assets were restructured to get below the $2,000 maximum for a single person. A Medicaid Friendly Annuity was purchased in Mary’s name. Mary is the annuitant and owner, and Van and Elaine are beneficiaries. Since Mary is the owner, there is no “gifting” of assets, thus Medicaid’s “three-year look back” period does not apply to assets placed into the annuity.

If Mary were to die in the next few years, Van and Elaine will receive a final balloon payment of $58,200 at the end of the annuity contract. They also have an option of receiving accelerated payments if they require access to funds before they receive the balloon payment.

Thus, the Hughes were able to accomplish the following:

• Have Mary approved immediately for Medicaid
  
• Preserve the entire amount of Mary’s assets
  
• Rest easy knowing that they have a little nest-egg coming their way