Is There a Way to Make a Gift After Death Without Worrying About the Medicaid Five-Year Lookback?

[Dale M Krause]

Certainly! ELCO Mutual, an insurance company in Lake Bluff, Illinois, offers a new guaranteed-issue whole-life product called Presidio Plus.

Presidio Plus is a whole life insurance product offering clients a guaranteed issue. It combines the benefits of life insurance and irrevocable trusts, allowing clients to set aside funds for their loved ones in an estate trust controlled by the insurance company. This ensures that their beneficiaries receive a payout for a death benefit. Presidio Plus is designed to be affordable and easily accessible without medical exams or underwriting. It is an ideal choice for those who wish to give a gift after death without worrying about the high costs usually associated with irrevocable trusts or the Medicaid five-year lookback period.

To learn more, please consult ELCO Mutual's website: [EXTERNAL LINK] - Life Insurance and Annuities | ELCO Mutual.

 

[Allen Trent]

Premium paying or Single Premium or both available?

PS: I thought the only gift you could keep giving after death was voting in elections

 

[LostDollar]

Premium paying or Single Premium or both available?

Caveat, not an agent.

I have looked at Elco from time to time over the last few years because of an older post on site mentioning them for Medicaid compliant annuities.

However

They do not meet the basic AM Best criteria which you, Ray, and SCA continually ask for on annuities, A- or better. Don't know how you all feel about Best ratings for Life Ins vs Annuities.

They have been B+; -- according to their website they were raised from B+ to B++ last year.

 

[LostDollar]

PS: I thought the only gift you could keep giving after death was voting in elections

Your comment put me in mind of a Ray Stevens song I discovered a month or so ago.

You are creative enough that you either can find it or already know about it. I am not posting a link here because I don't want to be guilty of turning this thread into a political argument.

 

[Newby]

There are several companies that have those estate planning trust but they must be set up five full years before the person applies for Medicaid or they do not work.
They can do a funeral Trust with no look back, but the reason it has no look back is that any money not used for the actual funeral has to run through the person’s estate and anything that runs through the estate goes to Medicaid if they’ve been on Medicaid.

 

[Dale M Krause]

You are correct. The Funeral Expense Trust (FET) qualifies under Medicaid rules, which allow an individual to have an irrevocable prepaid funeral. The Presidio Plus insurance product also involves an irrevocable trust controlled by the insurance company. However, since the funds resulting from the product are not earmarked for an exempt purpose under the Medicaid rules, it must be established and funded five years before long-term care (LTC) and Medicaid.

 

[Dale M Krause]

The FET product is designed for individuals seeking Medicaid to cover their long-term stay in a nursing home and do not have a prepaid burial plan.

On the other hand, the Presidio Plus product is suitable for those who want to allocate funds for their grandchildren and ensure that they receive the amounts after their passing. However, suppose they plan to depend on Medicaid to cover their future long-term care requirements, particularly in a nursing home. In that case, they must establish and fund the Presidio Plus product at least five years before the anticipated need. This is to surpass Medicaid's five-year lookback for uncompensated gifts.

 

[jdeasy]

Certainly! ELCO Mutual, an insurance company in Lake Bluff, Illinois, offers a new guaranteed-issue whole-life product called Presidio Plus.

Presidio Plus is a whole life insurance product offering clients a guaranteed issue. It combines the benefits of life insurance and irrevocable trusts, allowing clients to set aside funds for their loved ones in an estate trust controlled by the insurance company. This ensures that their beneficiaries receive a payout for a death benefit. Presidio Plus is designed to be affordable and easily accessible without medical exams or underwriting. It is an ideal choice for those who wish to give a gift after death without worrying about the high costs usually associated with irrevocable trusts or the Medicaid five-year lookback period.

To learn more, please consult ELCO Mutual's website: [EXTERNAL LINK] - Life Insurance and Annuities | ELCO Mutual.

This is a quite a bit of false advertising or clueless advertising. I don't know which.

As long as the insured names a person as beneficiary the life insurance benefit cannot be taken by Medicaid. The face amount has nothing to do with Medicaid eligibility either.

Any policy can be put into a funeral trust in any state up to the state maximums and the cash value is exempt from being a countable asset without being subject to the 5 year lookback.

This is just a gimmick to get the unknowing to sell an overpriced product.

 

[DonP]

I apply for Medicaid for many clients . They can have a house and 1 car and still get Medicaid as those are not countable assets . If that person dies in 5 or 10 yrs will Medicaid try to clawback the equity in there house upon death ? I know if they go in nursing home they will.

 

[rousemark]

Premium paying or Single Premium or both available?

PS: I thought the only gift you could keep giving after death was voting in elections

And that, only if you vote democrat.