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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Agree - do a trust instead.  There is no such thing as a "good" annuity.[/quote]

+ 1[/quote]

There are basically three types of special needs trusts that can be set up not to interfere with the beneficiary's SSI/Medicaid eligibility.  Each has its advantages and disadvantages depending on the exact circumstances of the family and beneficiary. A "first-party" special needs trust holds assets that belong to the person with special needs, such as an inheritance or an accident settlement. Any remainder after the person's death goes to the government to repay benefits. A "third-party" special needs trust holds funds belonging to other people who want to help the person with special needs. Parents and other family members set up and fund these "third-party" trusts and the big advantage is that there is no payback requirement after the beneficiary dies and can be used for another family member or donated to charity. The last type is a "pooled" trust  set up by a charity that holds funds from many different beneficiaries with special needs.  Each beneficiary has their own account and the charity manages the money. After the beneficiary's death, both the government and the charity receive the remainder.  Nonprofits like The Arc will manage first- and third-party SN trusts too.

An annuity held inside one of these SN trusts can be appealing because the insurance aspects of the annuity assure a steady income stream for the life of the beneficiary. But as others point out, there are many types of annuities with different levels of financial risk/return and some annuities have lots of hidden fees, commissions, and expenses that can be very difficult to uncover (scam like). The most straight forward kind is a single, fixed, immediate annuity from a highly rated insurance company - one that pays a fixed amount for the life of one beneficiary on a regular basis and begins payment immediately. [/quote]

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