My mother and father are both around 80 and in poor health. They have depleted their savings below $20,000 and are living primarily on Social Security. My mother has had a modest inheritance from a recently deceased sister that is enough to keep them comfortable for 10 years if it were put in a 10 year annuity at 3%.
I've been looking into Medicaid friendly annuities because it's very likely one or both of my parents could require institutionalization and I worry the inheritance could be jeopardized by the bills. But it seems like most of what I read relies on the concept of a "community spouse" which is the person who is not institutionalized and in whose name the annuity is typically purchased. The problem is, it's a roll of the dice which one of them succumbs first.
Am I understanding the problem correctly? Essentially I want to put the money in an investment that can't be liened or seized for medical expenses in the event one or both of my parents are institutionalized. I want the whole thing to liquidate over the next 10 years leaving nothing.