Annuity to Fund a Personal Services Contract

A Personal Services Contract (PSK) is often used as a spend-down tool for Medicaid eligibility. If used alone, a PSK poses three non-Medicaid problems:

Excess income taxes
Loss of control
An unequal inheritance

The caregiver is the owner and payee of the policy, and the care recipient is the annuitant. In some cases, an insurance company will not allow the owner and annuitant of a contract to be separate individuals. In those situations, the caregiver is also the annuitant of the policy. This product/strategy is widely used in Florida.

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An Annuity to Fund a Personal Services Contract is right for your client if they:
Are coupling the product with a a Single Premium Immediate Annuity (SPIA) and a PSK Annuity Settlement Trust.
Are a resident of Florida as this product is primarily used in the state.