Life & viatical settlements in New York

How life settlements work in New York

Life and viatical settlements in New York are regulated under NY Ins. Law §7811. The New York Department of Insurance licenses both viatical providers and brokers, and requires written disclosures, a 60 days rescission period, and standardized contract forms.

For cancer patients in New York, the most common path is a viatical settlement under IRS §101(g), where proceeds are tax-free at the federal level if you’re certified as terminally or chronically ill. New York conforms to federal tax treatment for these settlements.

Medicaid impact in New York

New York’s Medicaid asset limit is currently $15,750 for individuals (2026). A lump-sum settlement that exceeds this limit can disqualify you from coverage. Specialized trust structures (special needs trusts, pooled trusts) can preserve eligibility but must be established before proceeds arrive.

This is the single most important planning step for New York patients receiving a settlement. We’ll connect you with a New York elder law attorney if you’d like guidance.

What’s different about New York

• Rescission period: 60 days from contract signing to change your mind
• Required disclosures: Buyers must provide written disclosures including alternatives (loan, surrender, ADB rider)
• Privacy: Medical and policy information is HIPAA-protected throughout
• Tax treatment: New York follows federal §101(g) for viatical proceeds

Major New York cities we serve

Statewide. Our licensed specialists work with policies throughout New York, with no in-person meetings required. Documentation, signatures, and notarization can all happen remotely.