My recent presentation at the New Jersey Bar Association’s Elder Law Retreat on the use of QLACs in estate planning was well-attended, and there was a lot of discussion afterwards.
I am not advocating for or against the use of QLACs—Qualified Longevity Annuity Contracts – in retirement planning. Like any other financial instrument, it is suitable for some people and not for others. For those who have a pension and Social Security and do not need any additional income at the start of their retirement, the QLAC can serve as a means of deferring part of their income to later in life.
As an Elder Law and estate planning attorney with a strong background in tax planning, it’s my job to know about the different options available to clients.
Under federal law, the QLAC qualifies as a Medicaid qualifying annuity. However, in some states, Elder Law attorneys are engaged in litigation to preserve their client’s rights to own to QLACs. It’s the states that are not following the federal guidelines, and there’s no easy answer to that.
If you’d like to discuss whether or not a QLAC would suit your personal situation, please call me at 516-307-1236.