Page 13

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 13 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**”

• To the individual's child, or to a trust established solely for the benefit of the individual's child, who is blind or disabled, as defined by SSI, at the time of the transfer. If there is no disability determination at the time of the transfer, obtain an MEDT decision. The age at onset of disability is not a factor.

• To a trust established for the sole benefit of an individual under 65 years of age who is disabled as defined by SSI.

For the sole benefit of means to benefit one person only. A transfer is considered to be for the sole benefit of a spouse, blind, or disabled child, or disabled individual if the transfer is arranged in such a way that no individual or entity except the spouse, blind, or disabled child, or disabled individual can benefit from the assets transferred in any way, whether at the time of the transfer or at any time in the future. A trust is considered to be established for the sole benefit of a spouse, blind, or disabled child, or disabled individual if the

trust benefits no one but that individual, whether at the time

the trust is established or any time in the future.

The transfer or trust instrument or document must provide for the spending of the funds involved for the benefit of the individual on a basis that is actuarially sound based on the life expectancy of the individual involved.

3. The individual makes a satisfactory showing that he or she intended to dispose of the assets whether at fair market value or

for other valuable consideration.

4. The individual establishes that the assets were transferred exclusively for a purpose other than to qualify for Medicaid.

5. All of the assets transferred for less than fair market value has been returned to the individual.

6. Imposition of a penalty would work an undue hardship.

I-1674.5 Annuities

For Medicaid eligibility purposes, an annuity is considered a legal instrument or device similar to a trust (Refer to I-1730, Trusts