Certified Senior Advisor (CSA) Practice Test

Creating an immediate annuity is a viable financial strategy for Janice to reduce her countable assets while applying for Medicaid. This is because immediate annuities allow individuals to convert their assets into an income stream. When an immediate annuity is established, the funds placed into the annuity may not be counted as available resources for Medicaid eligibility purposes, depending on specific regulations and the timing of the annuity purchase in relation to the Medicaid application.

By structuring her finances this way, Janice may be able to meet the asset limits required for Medicaid eligibility while still receiving income to support her needs. Immediate annuities can provide a steady source of income while decreasing liquid assets that might otherwise disqualify her from receiving assistance.

Other strategies mentioned, such as transferring assets to heirs, placing assets in a revocable living trust, or simply designating beneficiaries, do not effectively address the requirement for reducing countable assets in a way that aligns with Medicaid's rules. For instance, transferring assets may result in penalties if done within a certain timeframe before applying, while revocable trusts generally still count the assets held within them as part of the applicant's resources. Designating beneficiaries does not impact the count of assets but rather pertains to how assets are distributed