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Applicant Denied Medicaid Benefits Due to Brokerage Fee Wins Fair Hearing!

POSTED ON - June 8, 2022

Written By Alisa Lamal

  A recent case before the Idaho Department of Health and Welfare resulted in a favorable decision for the elder law community. The issue at hand was whether the brokerage fee that was paid by […]
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Choosing the Right Medicaid Spend-Down Tool: Promissory Note or Medicaid Compliant Annuity

POSTED ON - March 17, 2022

Written By Alisa Lamal

  When it comes to choosing between a Promissory Note or a Medicaid Compliant Annuity (MCA), there are many factors to consider when determining which spend-down strategy will best serve your client. Both tools must […]

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Stack of coins
What You Need to Know About Qualified Income Trusts

POSTED ON - February 21, 2022

Written By Alisa Lamal

  When applying for Medicaid, most clients aren’t surprised to hear that they will need to comply with certain asset limitations in order to qualify for benefits. However, what some clients may not realize is […]

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Massachusetts SJC Hearing Recap: Should MassHealth Be Named Primary Beneficiary?

POSTED ON - February 3, 2022

Written By Katie Camann

  Yesterday, the Massachusetts Supreme Judicial Court (SJC) heard oral arguments regarding the case of EOHHS of the Commonwealth of Massachusetts v. Linda Marie Mondor, et al. The arguments centered around whether the commonwealth must […]

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how to use the Medicaid Desk Reference
How to Use the Medicaid Desk Reference

POSTED ON - January 20, 2022

Written By Alisa Lamal

  It is always helpful to have a “cheat sheet” on hand to quickly reference your state’s Medicaid planning figures when advising a new client or preparing a new case. However, while some figures you […]

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Outside of courthouse
New Jersey Supreme Court Reverses Penalty Period Ruling Regarding Returned Property Interest

POSTED ON - November 9, 2021

Written By Alisa Lamal

  A recent decision handed down from the New Jersey Supreme Court states that the institutionalized spouse maintains an interest in previously gifted property that has been returned only to the name of the community […]

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When you have a senior client seeking Medicaid benefits, existing annuities can pose a problem. Certain annuities may be deemed a countable asset, while others may count as a divestment. In some cases, your client’s annuity may be sold on the secondary market, and they can use the resulting funds to purchase a Medicaid Compliant Annuity and pursue Medicaid eligibility. Fortunately, we offer complimentary annuity valuation services and can get your client competitive offers on their contract. Here’s what you and your client can expect from the secondary annuity market. Step 1: You send us your client’s contract. Once you send in your client’s contract, we review it and determine if it can be sold on the secondary market. The most common types of annuities we evaluate are contracts that were purchased by seniors to provide income during their retirement years. In order to be sold on the secondary annuity market, the contract must meet the following requirements: • Funded with non-qualified, after-tax dollars • Annuitized and making regular payments • No cash or surrender value option available • Not an IRA • Making payments for a certain, guaranteed period OR include a guaranteed cash benefit payout option upon the owner’s death Read more: What is a Medicaid Compliant Annuity? Step 2: We assess the contract’s value and present multiple offers. After verifying the annuity meets these specific requirements, we assess its value. To do so, we send the contract details to secondary market companies that regularly purchase annuities in exchange for offer letters. We typically compile at least three offers to establish the annuity’s Fair Market Value and ensure the transaction is not penalized for Medicaid purposes. Our sister company, Krause Annuity Services, may also bid on the contract if it meets certain criteria. Once all offers are compiled, we send them to you to present to your client. Step 3: Your client accepts an offer and completes the paperwork. Your client chooses an offer to accept, and our office assembles the necessary paperwork to complete the sale. In most cases, the secondary market company takes over the ownership, payee, and primary beneficiary designations on the contract. After all the documents are completed and signed, our office sends them to the insurance company and follows up until all applicable ownership and designation changes have been completed. Then, the secondary market company releases the funds to your client, either by wiring the funds or mailing a check. As the new owner, payee, and beneficiary, the secondary company takes over the contract and receives all remaining payments as well as any death benefit of the annuity. Step 4: Your client receives the cash. The timing of this process can vary depending on the processing times of the insurance company and whether any additional information is required. However, when you work with us, the typical timeframe for the entire process, from start to finish, is 5 to 14 business days. On a case-by-case basis, our office may be able to release the payment prior to completion in order to meet specific deadlines for Medicaid eligibility. If your client has a non-compliant annuity and is looking to qualify for Medicaid, contact our team at Krause Financial Services to find out if the contract can be sold on the secondary market.
What to Expect from the Secondary Annuity Market

POSTED ON - October 19, 2021

Written By Katie Camann

  When you have a senior client seeking Medicaid benefits, existing annuities can pose a problem. Certain annuities may be deemed a countable asset, while others may count as a divestment. In some cases, your […]

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gavel resting on law book
Massachusetts Update: Is the State Entitled to the Remainder of a Community Spouse’s Annuity?

POSTED ON - September 30, 2021

Written By Katie Camann

  UPDATE: This matter has been referred to the Supreme Judicial Court in Massachusetts and is set for argument in February. The Executive Office of Health and Human Services is arguing the sole benefit rule […]

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Man at desk with laptop
7 Considerations for Attorneys to Determine Whether a Client Is a Good Fit for LTC Planning

POSTED ON - August 30, 2021

Written By Jonathan Michaels

  As CEO of a wealth management firm and author of the book, “The Medicaid Roadmap,” many of my trusted referral sources are elder law and estate planning attorneys. One of the biggest frustrations attorneys […]

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