Since 2016, we have been involved in assisting elder law attorneys in Ohio protect their client’s qualified and non-qualified financial assets from staggering nursing home costs.
One of our most advanced strategies is the “Name on the check rule” to convert an institutionalized spouse’s 401k/IRA/Roth into an income stream. The annuity checks are made payable to the community spouse to preserve assets to help with living expenses. This conversion does NOT create an immediate large taxable event, however, each monthly annuity payment is taxable.