Immediate annuities have long been used in long-term care planning as a means of converting assets that are countable against the limits for MassHealth eligibility into an income stream that does affect eligibility.
This approach primarily benefits spouses of nursing home residents, but can be used for single nursing home residents as a form of “arbitrage,” in effect to pay the MassHealth rates rather than the private-pay rates charged by nursing homes.
The rules governing the use of annuities in long-term care planning are complex. For more information on MassHealth rules regarding nursing home residents and annuities, please request our complimentary legal guide.
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