How can annuities benefit ALTCS/Medicaid recipients?
In some limited circumstances (usually involving married couples), purchase of a commercial single-premium, immediate annuity may allow an ALTCS applicant to qualify for benefits more quickly. The effect of annuity planning can be dramatically beneficial, but depends entirely on the specific facts of each situation. Arizonas ALTCS program does not permit the same favorable treatment for annuities created by private parties (children, for instance), annuities with lump-sum payouts, or annuities that can be converted to casheven if a penalty is imposed. Annuity planning should be undertaken only with expert advice.
