Krause Financial Services

One of the largest obstacles in Veterans Benefits planning can be taking future Medicaid benefits into consideration – planning for the unknown. When planning with annuities, many opt to use a Medicaid Compliant Annuity simply to ensure that the product will not impede a future Medicaid application. However, this is not a requirement in Veterans Benefits planning, and can unnecessarily limit the insured’s financial flexibility and planning options.

In light of the above, Mr. Krause has assisted in the creation of a revolutionary new product, which has changed VA planning with annuities – the VA Annuity. The product is a traditional single premium immediate annuity – assignable and revocable as to the beneficiaries, but still offering zero cash value. By remaining assignable and revocable as to the beneficiaries it provides flexibility for the unknown, and leaves the door open to multiple planning options.

This is the revolutionary part. At any time the owner may elect to add a “restrictions endorsement,” resulting in the state Medicaid agency being added as a beneficiary, and

the annuity being made irrevocable and non-assignable. These changes result in an annuity compliant with the Deficit Reduction Act of 2005, more commonly referred to as a Medicaid Compliant Annuity. Or, if it was in the owners’ interest to get rid of the annuity in exchange for a lump sum of cash, he or she could simply sell it on the secondary market in light of its assignability.

For more information, we offer a number of Veterans Benefits planning resources on our Planning Tools page.

Product Availability

This product is available in every state except:

  • Alaska
  • Arkansas
  • Connecticut
  • District of Columbia
  • Hawaii
  • Massachusetts
  • Montana
  • New Hampshire
  • New York
  • Oregon
  • Rhode Island
  • Vermont
  • Washington

No inference is to be drawn that any of the insurance products provided by Krause Financial Services have been reviewed or approved by any state Medicaid office.  Krause Financial Services makes no guarantee that purchase of any insurance products will result in eligibility for Medicaid or any other assistance program.  Furthermore, it is recommended that a potential insured meet with an elder law attorney prior to proceeding with any investment.

Category: Annuity

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