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Actuarially Sound – A promissory note, annuity, mortgage, or loan established to pay off the entire asset value over the actual or expected lifetime of the annuitant/lender is actuarially sound. The annuitant/lender is expected to live long enough to receive an amount that is equal to or greater than the amount originally invested. The total amount of proceeds must be designed to be paid out in equal regular payments during the term of the agreement, with no deferral and no balloon payments.

Annuity - An annuity is a type of trust. An individual pays an entity a lump sum of money in return for the right to receive fixed, periodic payments, either for life or a term of years. This includes the investment portion of a single premium pure endowment life insurance policy. Annuitant – An annuitant is the person who receives the income payments of an annuity policy at maturity date for life or for a specified period. The annuitant may or may not be the same as the owner. Beneficiary of an annuity – The beneficiary is the person who receives any benefit that is paid upon death of the annuitant prior to the maturity date of the annuity.

Compensation - Something received as payment for an asset. Payment is usually considered to be cash, but other forms of payment include in-kind income, real or personal property, support and maintenance, services, or assumption of a legal debt.

Contiguous Property- A property that is one continuous plot of land or several plots of adjoining land. Contiguous means being in actual contact: touching along a boundary or at a point.

Cost of Care - The amount of money charged to an individual for NF or ICF-IID level of care, nursing facility level of care in a Swing bed or in acute care hospital bed, waiver services for the Community Alternatives Program or Program of All-Inclusive Care for the Elderly (PACE).

Current Market Value - The value of an asset if sold on the open market. For real and personal property, it is the tax assessed value of the property, unless that value is rebutted and a different value established. Refer to MA-2230, Financial Resources, for instructions on establishing and rebutting the tax value.

Equity – The equity of real or personal property is the current market value (see definition above) less any encumbrances (mortgages, liens, or judgments) on the property.

Convincing Evidence – Refers to the quality and convincing force of the evidence rather than to the quantity of the evidence.

Homesite - When applying the transfer policy, the homesite is defined as any property the a/b or financially responsible person has an ownership interest and • Which is currently used (or during the lookback period was used) as their principal place of residence, or to which they intend (or intended) to return, or • Which is currently used (or during the lookback period was used), as the principal place of residence of their spouse or his dependent relative.

It includes the land the home sits on and all buildings and land contiguous to the home.