By Fredrick P. Niemann, Esq. a New Jersey Medicaid Attorney
Annuities are really confusing yet it is common to hear annuities described as “Medicaid friendly.” What does “Medicaid friendly” mean? Simply stated, they are assets placed in an annuity that will be protected from the cost of long term care. Under New Jersey law a traditional commercial annuity does nothing to protect assets from the cost of long term care. In fact, without careful planning, simply investing in an annuity will result in the unnecessary loss of assets. Understanding why this is the case requires some understanding of estate planning, elder law, and annuities. By taking the time to understand annuities you can easily save tens if not hundreds of thousands of dollars. Planning for disability will greatly increase the likelihood of having something to pass on to heirs, while at the same time reducing stress and maximizing one’ own independence.
What is an Annuity?
Annuities can be either assets or income streams. Alone that doesn’t mean much.  Stay with me.  When initially purchased, most annuities are like certificates of deposit with a longer term and a greater penalty for early withdrawal. Such annuities are assets and are said to be “deferred “or immediate.  An immediate annuity means money can be taken out right away.  Deferred annuities do not pay out interest right away.

Contact me personally today to discuss your New Jersey Medicaid matter.  I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns.  You can reach me toll free at (855) 376-5291 or e-mail me at