In a typical husband and wife situation, whereby one of the parties has entered a nursing home and needs to qualify for Medicaid benefits, what happens if the community spouse has an IRA account in excess of $104,400.00?
Unlike the states of California, Florida, Kentucky, Mississippi, New York, Pennsylvania, and Wisconsin, where a community spouse's IRA account may be a protected resource, in the other states the community spouse may not have any choice but to convert the excess IRA funds into ...
As a result of the Deficit Reduction Act of 2005, and in the case of an individual - no community spouse, the most popular Medicaid Crisis Plan involves a Gifting/Short-Term Medicaid Compliant Annuity (which has also been referred to a “Half-A-Loaf Plan”).
Within such a plan, the potential Medicaid applicant/recipient is advised to gift away approximately 1/2 of his or her spend-down amount, while using the other half to fund a Short-Term Medicaid Compliant Annuity. With the gift amount c ...
