FPA Dallas/Fort Worth

Summer 2017 Newsletter

The FPA DFW Newsletter has a NEW look!

We hope you will find the new FPA DFW Newsletter more modern and user friendly. If you have feedback or content you would like to share, let us know: execdir@fpadfw.org.


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The Dallas/Fort Worth chapter of the FPA seeks to publicly honor individuals that have shown an extraordinary commitment and made significant contributions to the financial planning profession and the FPA. As FPA members, you are among the best of the best and you work with exceptional professionals/leaders/volunteers every day. If you know of a chapter member, colleague, community leader, volunteer or company within our DFW community that demonstrates a commitment to the highest standards of professional competence, integrity, relationships and stewardship; and whose extraordinary contributions advance the financial planning profession, consider nominating them for the FPA DFW Honors Award or Young Gun Award today. The deadline for nominations is September 1.


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Welcome New Members!

View National FPA's Your Membership Advantage Discounts!

Jordan Andreola - 1st Global
Toby Brown - LearnVest, Inc.

Franklin Davis
Darin Doty

Linda Ginder - SFMG Wealth Advisors
Robert Griffin, CFP®
Greg Hutto, CFP® - Heritage Retirement Advisors
Paul Lightfoot, CFP® - Optima Asset Management, Inc.
Bruce MacFadyen - Door, Inc.
Brad Purifoy - Corporate Finance Associates

John C. Rhem
Grant Schroeder, CFP®
Brian Weatherly
- Cox Financial Group
Kyla Wetzel, CFP® - SFMG Wealth Advisors
Curtis Williams, CFP® - CLA Wealth Advisors
Richard Winters, CFP®

Congratulations on Your Member Anniversary!

35 Years

David Bell, CFP®
John Dodd, CFP®
- Dodd & Associates

30 Years
Emerson Bell, CFP® - Fee Only Financial Planning, Inc.

25 Years

Janet Gaunt, CFP®, ChFC - Ameriprise Financial Services

15 Years

Scott Cohen, CFP®, CFS, CAP - CD Wealth Management, LLC
Charles Green - Charles R. Green & Associates, Inc.

Ernest Isbell, CFP®
William Marley
- Life Path Wealth Advisors

Joseph Nolan, CFP® - RGT Wealth Advisors

Tara Scottino, CFP® - True North Advisors, LLC

10 Years

Steve Blankenship, CFP® - Heritage Financial Planning

David Dugger, CFP®, CPA - Westbrooks Dugger & Westbrooks

Laura High, CFP® - RBC Wealth Management

Mark LaDrew, CFP®, MBA - Waddell & Reed

Dallas McKee, CFP® - Lifeway Financial Corporation (FPA DFW Secretary)
David Nelson, CFP® - Daniels & Erickson Financial Advisors, LLC
Stephanie Poorman, CFP® - SFMG Wealth Advisors

Paul Streiber, MBA, CFP®, CRPC® - Heritage Financial Planning

Michael Woods, CFP® - Stocker Woods Financial, Inc.

5 Years

Jessica Boghetich, CFP® - RGT Wealth Advisors
Samuel Drost
Carl Larimore, CFP® - Mercer Advisors
Caleb Martin, CFP® - GuideStone Financial Resources
Scott Parker, AAMS® - Charles Schwab & Co., Inc.



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Using annuities in Medicaid planning

Steve Hamilton, JD, CLU, ChFC

Director, Advanced Consulting Group


What is Medicaid?

Medicaid, sometimes referred to as Title 19, is a federal and state program that provides medical assistance for those who qualify. The specific requirements vary by state and even by local communities. It is meant to assist those who don’t have the financial resources to pay for their medical care. It is often used for those who need but cannot afford the cost of long-term care but it may also provide assistance to those with special needs. It is a program that is meant to help the impoverished and needy.

Medicaid requirements

There are generally 3 factors that have to be considered to determine if someone qualifies for Medicaid assistance.

  1. Asset limits

  • Exempt of non-countable assets

  • Nonexempt or countable assets

  1. Income limits

  2. Gift – A 5-year look-back for any transfers done for less than fair market value

    There are also additional planning factors when a community spouse (the noninstitutionalized spouse) is involved since states have enacted non impoverishment laws to allow the community spouse to live at home and not be forced into poverty.

How are immediate annuities used in Medicaid planning?

Immediate annuities are used to convert assets into income to help bring the amount of countable assets down to within the Medicaid asset limitations. The Deficit Reduction Act (DRA) of 2005 established guidelines defining the characteristics an annuity must have to be considered a non-countable asset and excludable from the 5-year look-back. The annuity must:

  • Be irrevocable and non-assignable

  • Use life expectancy tables equivalent to the Social Security life expectancy tables used by Medicaid (This table is different from the life tables used for determining required minimum distributions for IRAs.)

  • Return all premium to the client by the end of the client’s life expectancy

  • Have a term no longer than the client’s life expectancy

  • Have no cash value

  • Be actuarially sound:

    • Cannot provide balloon payments

    • Must have equal payments

  • Have the beneficiary arrangement set up to comply with the state’s Medicaid recovery rules

States may have their own variations on these requirements, especially related to IRAs or money in retirement plans.

Guidance has to come from the client’s attorney

A qualified knowledgeable attorney who specializes in Medicaid planning in the client’s community needs to be involved if a client or client’s family is considering Medicaid. Only that attorney can provide specific legal advice and direction on setting up a Medicaid plan for a client. An advisor should get specific written directions on how the annuity application has to be completed. A copy of these directions or instructions should be kept in a file.

Does an annuity always have to be Medicaid compliant?

There may be planning situations where an annuity doesn’t have to meet the Medicaid requirements but the attorney will have to determine if that is appropriate based on the client’s situation. That is why it is imperative that written direction from the attorney be provided for how the annuity has to be set-up.


Medicaid regulations and requirements have changed and may change in the future, so it is best to have a plan that is not dependent on Medicaid. Good planning, with proper investing and the appropriate insurance products allows the client to determine the type of medical care and lifestyle that he or she wants.


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Thank you to our 2017 Platinum, Gold & Silver Partners!

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