| Later transfers….read on:
CLIENT QUESTION:
I have an annuity in a non-qualified taxable account. This account was NOT transferred to our irrevocable trust you set up in September 2012.
This variable annuity is annuitized and currently is in joint & survivor “payout status” with a current value of about $60K
My question is: Should I transfer this account to the trust, and if so, does that start another five-year lookback?
Is that look-back just for the $60k or the entire trust value which currently contains my two houses?
Thanks for your Listen to Lawrence emails. My questions are based on today’s letter (9/16/25 Volume 6, Issue 378), and I’m not sure if it is worth the bother of making the transfer of this account, and/or if another lookback period is created.
MY RESPONSE:
Whether you should “bother” protecting any assets (regardless of their value) from Medicaid is a very personal decision that only you can answer. If you decide you wish to, the transfer will be subject to a new five-year look-back period for this asset only. However, DO NOT add it to the trust. If you do not make it through the new year look-back, we may need to undo the transfer, and that may make the assets in the trust vulnerable. Since I have not seen you in 13 years, perhaps it is time to have a consultation with me to discuss all of your current options.
I hope this helps! |
