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Subject:  Re: Protecting Assets Date:  12/20/1999  12:08 PM
Author:  dweiss3 Number:  16635 of 78168

I did a lot of research on this subject a few years ago for my elderly parents. Their situation was: dad got approved for long term care insurance but mom was turned down due to early signs of alzheimers. The only workable strategy we could find was the following:
Dad wanted to protect $200K of their assets if mom had to go into a nursing home. He bought a single premium variable annuity invested in several mutual funds. The plan was for him to annuitize (select a lifetime payout option for himself) if it looked like Mom had to go into a nursing home. The law says that the "community spouse's" income is exempt from consideration for use to pay nursing home costs prior to Medicare kicking in. The payments to Dad from the annuity would be considered his income as the community spouse. When the rest of their assets had been spent down for nursing home costs for Mom, Medicare would begin to pick up the tab. I checked this out with a financial planner and he agreed that this arrangement would not run afoul of the look b