Promissory Notes

The Deficit Reduction Act of 2005 also carved out special safe harbor promissory notes.  However, in the application by the states, there has been a lack of uniformity in how these promissory notes can be used for to help with Medicaid spenddown plans.


In the few states where safe harbor promissory notes are a viable planning tool, our planning team can help you coordinate the use of a promissory note to solve a client's planning needs.


Promissory notes operate much like annuities, except are arrangments made between private individuals and are not secured by the strength of an insurance company. While most advisors tend to use safe harbor annuities to solve spenddown problems, where the annuity is unavailable or where the asset being spent down is unique and not consistent with the use of a safe harbor annuity, it may be possible to use a safe harbor promissory note instead.


Safe harbor promissory notes are only offered to elder law attorneys for their clients through our division. This is not related to NGL.

Smooth Sailing With Safe Harbor Annuities


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