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Greetings, Bob, and welcome. You asked:

<<Just wondering if any of you more knowlegable fools out there can help me out?
As a matter of estate planning for my parents, we were introduced to the idea of using annuity contracts applied to a conventional IRA, as a way of providing them with an income flow, but also protecting the bulk of the estate from "assisted living" costs should they arrive. It's my understanding that only the monthly distribution they recieve is subject to being applied toward assisted living costs, therby preserving most of the estate, dependent upon time constraints.>>

It sounds like a means to avoid asset depletion in the event they require long-term care by enabling them to qualify for Medicaid at the taxpayers' expense. If that's their desire, then I sincerely hope they are receiving some sound advice from an attorney skilled in elder law issues. Also, I hope the annuity does indeed preserve the bulk of the estate for heirs and not the insurance company. Unless there is a substantial death benefit in the contract, on the second to die there may be nothing left for kids or others.


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