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Third Circuit Upholds Use of Short-Term Medicaid Annuities

A recent decision by the U.S. Court of Appeals for the Third Circuit has held that the use of short-term Medicaid qualified annuities is a permissible Medicaid planning strategy. In so doing, the court in Zahner v. Secretary, Pa. Dept. Of Human Services concluded that a Medicaid planning motive does not preclude the use of very short-term annuities, provided that the annuities meet the statutory safe harbor requirements. For more details about this decision, please see the National Academy of Elder Law Attorneys’ website.

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