Deferred, or variable, annuities are generally considered countable assets that factor into MassHealth eligibility (see MassHealth , but immediate annuities are not. Immediate annuities are contracts with insurance companies wherein the annuitant pays a certain sum to the company in exchange for a promise that the company will pay back a fixed monthly amount. Buying …
Estate Planning Blog
Annuities that are Considered for MassHealth Eligibility
Definition: Annuity
An annuity is a financial product that grows while being funded and provides a regular stream of payouts at a later date. It is a contractual financial product, and is sold by financial institutions whereby the institution accepts and grow funds from an individual and then, upon annuitization, provides a stream of payments to the …
Long-Term Care Insurance
Deciding whether to purchase long-term care insurance, and choosing which policy to buy, is a very personal decision. In addition to the fact that Medicare and Medicaid offer only limited assistance, there are several factors to consider, including affordability, scope of coverage, family history, and, of course, age and eligibility. One thing worth noting is …
The Limited Value of Medicare and Medicaid
Medicare Medicare was established by the government to cover some expenses for a limited time during disability or old age. Medicare pays less than 25% of long-term care costs in the United States. Private insurance often pays for even less. (That’s why it’s important to carefully scrutinize a long-term care policy.) Medicare covers many hospital …
Planning for Long-Term Care
Many events can trigger the need for long-term care. Some children are born with an ailment that requires long-term care. Accidents and many diseases can strike anyone, at any age. Such events don’t just affect one person; their whole family is affected. Even setting aside tragic events, most people will need long-term care at some …
Trusts
Trusts are a special way of turning assets into a gift. They can help manage your assets and avoid probate. Through a trust, you can even give a gift to yourself. A trust is managed by one or more trustees who manage the trust property for one or more beneficiaries. Every trust is created by …
Homestead Declaration
One of the best asset protection tools available to a homeowner is the Homestead Declaration. Quite simply, if you reside in a home you own in Massachusetts, you can file a Homestead Declaration in the office of the county clerk in the county in which your home is located. That can protect up to $500,000 …
Important Long-Term-Care Planning Documents
Durable Powers of Attorney and Healthcare Proxies Health and safety are paramount concerns, so step one in the planning process is choosing your designated agents and executing durable powers of attorney and healthcare proxies. If something happens that renders you unable to manage your affairs, you are considered “incapacitated.” Sometimes, as in the case of …
Definition: Durable Power of Attorney
If something happens that renders you unable to manage your affairs, you are considered “incapacitated.” Sometimes, as in the case of a coma, it isn’t clear whether an incapacity will be temporary or permanent. An effective and reliable way to protect yourself and your assets is to appoint someone to act as your agent in …
Definition: Healthcare Proxy
A healthcare proxy is a document that delegates the power to make medical decisions in your behalf to someone you designate. This document limit your delegate to making healthcare decisions, only. Signing a healthcare proxy does not take away your right to make decisions for yourself. So long as you have the capacity to do …