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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 523 Personal Property Exclusions

with a disability. If there is a Community Spouse and/or a minor child or a child with a disability, Arkansas may be named in the next position after these individuals. If Arkansas is not named as the remainder beneficiary in one of these positions, the purchase of the annuity is treated as a disposal of resources for less than fair market value. 3. The annuity must provide for payments in equal amounts during the term of the annuity with no deferral and no balloon payments made.  NOTE: The caseworker will determine the value of APERS (Arkansas Public Employees Retirement System), ATRS (Arkansas Teachers Retirement System), OPM (Office of Personnel Management) and Railroad Retirement pension annuities. These pension annuities provide a scheduled amount of payment that will be income in the month received and a resource if retained in the following month.

15. Prepaid Burial Plan Annuities (Refer to MS E-523) - An annuity purchased to fund a pre- paid burial contract will not be a countable resource when the guidelines at MS E-523 #5. b.2 are met. When the caseworker can determine a pre-paid burial annuity meets these conditions, the annuity does not need to be sent to OCC for an opinion. However, if there are questions or issues that cannot be handled at the county level, submit the request to OCC for an opinion. 16. 529 Education Accounts – A 529 Education account is a tax-advantaged education savings plan established under and operated in accordance with Section 529 of the IRS Code. This account is counted as a resource in full for any individual listed as the account owner (no matter the age), but excluded for the beneficiary. Any payments to the beneficiary are counted as income in the month received. For 529 ABLE accounts, refer to MS E-600.