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What happens to my husband's annuity if he dies?

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Thanks. That's what I was afraid you'd say.
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My understanding is that the annuity (which is an insurance product) is considered an asset. As Medicaid allows 2K maximum for assets, the value of the annuity invariably takes them over the limit. The annuity -like a whole life insurance policy - has a cash value which will need to be spent down before Medicaid will. It also has a commission structure like other insurance products to whoever sold it to you. The annuity - like a cash value insurance policy - will need to be surrendered or cashed out with the proceeds used towards the spend down on their care.

To surrender or cash out has costs. Often hefty costs for the consumer. When there is an annuity and the looming likihood of needing Medicaid as there flat just won't ever be enough $ to private pay, often what is best is to every year take out the maximum allowed withou penalty to get the annuity defunded before its full run. The annuity policy or contract should spell out the terms on how to do this.

There are also firms - along the lines of those who buy structured settlements - out there that will buy the policy. These too are costly for the consumer.
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No, but she's switched her emphasis now to start using our long term insurance. I'm afraid it may be too soon as he's only a stage 2 LBD. But they will send a man to keep him company two days a month so she and I can go out, get our hair done, go to lunch, go grocery shopping, things like that. (Going out takes so much out of him that I don't want to drag him along anymore and he can't stay alone now) Thanks for asking.
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I can't answer the first question; I'll leave that to the Medicaid specialists.

As to the second, if you're one of the holders of the annuity, I would think that ownership automatically cedes to you. My parents held an annuity jointly; after my mother died my father was the sole owner.

BTW, was the situation with your daughter attempting to get you to go to a senior center ever resolved to your satisfaction? I remember that was quite a post with a lot of interesting answers when it was posted some months ago.
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