Medicaid Annuities after Dermody & Mondor

In Dermody v. Executive Office of Health & Human Services, issued by the SJC on January 27, the court rejected the plaintiff’s argument that an annuity that satisfies the Medicaid Act’s “sole benefit rule” need not also satisfy the statute’s requirement that annuities name the state as the primary remainder beneficiary on the death of the community spouse. The Court found that MAssHealth can recover costs from a spousal annuity. Lisa Neeley, who represented Dermody, says the SJC’s rulings are likely to trigger “hard discussions” between Medicaid planning attorneys and their clients as to the consequences flowing from the death of the annuitant prior to the end of the term of an annuity. And in a companion case, EOHHS v. Mondor, Brian E. Barreira, counsel for the defendant annuity beneficiaries in Mondor, said while the SJC may have taken spousal annuities off the table as a Medicaid planning tool, lawyers have other means of achieving the same result for their clients. This program dissects the meaning of these decisions and suggests planning strategies.

Attend & Learn

What Are the Lessons Learned from Dermody

What Are Alternative Planning Strategies

Why Consider Short Term Annuities for Community Spouse

Faculty

Brian Barreira, Plymouth

Margot G. Birke, ElderLaw Solutions, Newburyport

Scott Engstrom, Corporate Counsel, Krause Brokerage Services, DiPere, Wisconsin