My mother is currently in assisted living and is broke. I am selling her house and would like to know the best way to handle the proceeds. I was advised to put the money in a single premium immediate annuity naming the state as beneficiary and myself as second beneficiary. I thought annuities carried high fees. Will I be able to pay her monthly bills which will continue to increase from this type of account? And at some point sooner rather than later I will need to apply for Medicaid so need to know best way to handle the proceeds in that regards.

Thanks

Do you have power of attorney?

Who advised you, and do you have a lawyer who specializes in estate planning?

You are 5 years late selling her house. You could have kept the proceeds AND applied for Medicaid.
You will never see a dime, unless it is a very valuable house.
I see no reason to put the proceeds in an annuity. Rates are still much too low!
The state will eat them up PDQ anyway.
You might as well put it into short term safe instruments like 3 month CDs.

If the proceeds are substantial enough, I would take care of her at home for 5 years and apply for Medicaid immediately. I mean today. Online.
SEE AN ESTATE PLANNER tomorrow. Since she is broke, you don't need a lawyer. Many retirement communities have staff who are very well versed in elder law.

Bottom line: Medicaid (for anyone collecting SS) allows 3 assets: a residence, a car below a certain value, and a small amount of cash. That goes away the minute you go into a nursing home.

I will agree, it is far too late to sell the house, but the money will be used for her care and even delay medicaid if there is money. You need to talk to a pro in elder law, who can give you specific (not general) law.