Medicaid Annuity Valuation of Non-Compliant Annuities

Valuation of Non-Compliant Annuities

Helping your Clients Deal with Existing Annuities

It is common for seniors applying for Medicaid to own an existing annuity that will make them ineligible for benefits. In these cases, we will review your client’s contract and find a solution that fits their needs.

We handle annuities in crisis planning from A to Z.
We provide more than just Medicaid Compliant Annuities – we provide solutions for your clients that own troublesome annuities making them ineligible for Medicaid. We are your full-service, go-to company for crisis planning.
We Provide:
    Annuity Valuation.
    We will review your client’s contract to determine if it contains value on the secondary market. If it does, we can assist in selling the contract.
    Offer Letters.
    We will obtain multiple offers from secondary market buyers, allowing your client to compare their options and get the most for their annuity.
    Step-by-Step Guidance.
    If your client proceeds with the sale of their contract, we will walk you through the process step-by-step to help make this a quick and smooth transaction.
    Crisis Medicaid Planning.
    Once the contract is sold and the funds are received, we know that time is of the essence for your client to apply for Medicaid. We can assist you with a crisis Medicaid plan to properly spend-down the funds and gain eligibility for your client.
How We Work With You:
Working with our office is simple.
  • 1
    Provide a copy of the client’s annuity contract via e-mail or our online quote request tool.
  • 2
    Upon receiving the necessary information, we will provide you multiple offer letters from secondary market buyers, typically within one business day.
  • 3
    When your client is ready to proceed, inform us of the offer they choose to accept.
  • 4
    We will provide the necessary documentation to initiate and complete the sale of the annuity.
  • 5
    Upon processing all required documentation, the client will receive a check for the sale. The time from valuation to sale can be completed in as little as 1-3 weeks.
We Work With Members of The Most Trusted Organizations in Elder Law
Deferred Annuities
Annuities that Cannot be Sold
Tax-Qualified Annuities

There is no fee for this service.  Our review of your client’s contract and our assistance with its sale is completely complimentary.  If your client’s contract does not have any value on the secondary market, and you are seeking refusal letters, a small fee would be due.  For more information on this product, visit our “Refusal Letters” page.

If your client owns a deferred annuity (an annuity that is not making regular payments), they have several options available.  The annuity can be liquidated, or, assuming the client is seeking Medicaid benefits, it can be transferred via 1035 Tax-Free Exchange to a Medicaid Compliant Annuity.  For more information on how to handle deferred annuities in crisis planning, contact our office.

If your client owns an annuity that is not Medicaid compliant and cannot be sold on the secondary market, we will connect you with a Benefits Planner.  These annuities are typically treated as uncompensated transfers and result in a penalty period of Medicaid ineligibility.  Our office can help you determine your options for proceeding with Medicaid planning.

Annuities funded with IRA funds typically cannot be sold on the secondary market. Luckily, the Deficit Reduction Act of 2005 gave preferential treatment to annuities funded with tax-qualified funds, meaning the annuity might not prevent your client from qualifying for benefits, even if it seems to be non-compliant.  For an analysis of your client’s policy, contact our office.

Q: How do I know if my client’s contract can be sold?

A: Simply provide us a copy of the contract and we will advise accordingly.  A few items we look for include the contract being revocable and assignable.  Additionally, it cannot be a “lifetime” payout annuity, meaning payments are made only during the life of the annuitant.  Life annuities with a guaranteed period certain could still qualify.

Q: Who purchases the contract?

A: We work with a variety of reputable financial institutions that specialize in the valuation and sale of annuities on the secondary market.  You and your client will have the opportunity to review several offers from different companies before making a decision.