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Fixed Immediate annuity considerations for Florida Medicaid

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  • Fixed Immediate annuity considerations for Florida Medicaid

    My parents just sold their rental property with a net gain after taxes etc of $180-200,000 after the deal closes. They currently live in NY but plan on moving to florida next summer - finally convinced them . I wanted my mom to buy a SPIA with some of the proceeds to help her retirement needs, but am worried about how Florida considers it for its Medicaid look back period.

    My dad is 82, with dementia that will likely need some home care/assisted living/day care next year (hence the Medicaid planning). Otherwise physically healthy, his dad lived to 92.
    Mom is 67, has cholesterol issues but no other major medical issues with a family history of breast cancer (her sister and mom).

    The rental was in mom's name, and the sale would put her over the spousal asset limit for medicaid in Florida due to the 5 yr look back if they need it next year. My parents were also terrible with financial planning so I want to make sure my mom has enough income to live comfortably the rest of her life without draining all their funds on dad's care. I wanted my mom to purchase a fixed SPIA with some of the funds to help meet her retirement needs but I am unsure of how to get one that doesn't violate Florida's look back period. Googling leads me to believe that Florida must be listed as the primary beneficiary, but I wanted my mom to get a guaranteed fixed annuity for her lifetime without beneficiaries so she could get the highest monthly payout. Would she need to get one with a guaranteed payout to satisfy Florida's medicaid rules? Or just one with a beneficiary? I'd assume it would lower her monthly payout?

    Are there any advisors in Florida lurking on the site that can help me?


  • #2
    I would contact an elder law attorney in Florida, not a FA. You have a legal question.