LTC Help with my Friend's Mom

[RookieYankee]

My friend's mom has MS and was diagnosed with it in '91. I imagine LTC is out of the question. My other options I was thinking of bringing up to her are

1. Medicaid approved annuity
2. Create an irrevocable trust and gift her assets to her sister or kids (or anyone she trusts) that way after five years she won't have to worry about medicaid's spend down rules.

LTC isn't my specialty so I wanted to get some advice by some of the specialists on here.

 

[Arthur Rudnick]

originally posted by RookieYankee

My friend's mom has MS and was diagnosed with it in '91. I imagine LTC is out of the question. My other options I was thinking of bringing up to her are

1. Medicaid approved annuity
2. Create an irrevocable trust and gift her assets to her sister or kids (or anyone she trusts) that way after five years she won't have to worry about medicaid's spend down rules.

LTC isn't my specialty so I wanted to get some advice by some of the specialists on here.

Unfortunately, someone diagnosed with MS is uninsurable for a LTC policy.

Your friend's mom, needs to speak with an Elder Law Attorney.

A couple of points to keep in mind:
1) If she winds up on Medicaid and has an annuity, the beneficiary of that annuity will be the state's Medicaid Program in the state where she resides
2) The 5-year look-back period does not start until she applies for Medicaid. She would therefore have to meet Medicaid's rules & regulations regarding income and assets at the time of application.
3) Be aware of "Estate Recovery" upon her death