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Division of Welfare and Supportive Services F-420 Medical Assistance Manual TRANSFER OF ASSETS 23 Oct 01 MTL 04/23 ANNUITIES

1. A community spouse; and/or

2. A minor child or disabled child (the disabled child could be a minor or an adult); and

3. There is a community spouse or minor or disabled child and the state is named in the next position after (1) or (2); but

4. If a community spouse or minor or disabled child, or their representative disposed of any of the remainder of the annuity for less than fair market value, the state is named in the first position.

As a remainder beneficiary the state may receive up to the total medical assistance, LTC, or HCBW services paid on behalf of an individual.

The case manager notifies the issuer of the annuity of the state’s right as the preferred remainder beneficiary, and requests verification the state is named as a remainder beneficiary in the correct position.

The issuer is required to notify the state if and when there is a change in the amount of income or principal being withdrawn.

If the state is not named as a remainder beneficiary in the correct position, the full purchase value of the annuity is considered a transfer for less than fair market value.

Annuities Purchased By or On Behalf of an Annuitant Who Applies for Medical Assistance

The purchase shall be treated as a transfer of assets for less than fair market value unless the annuity meets the following criteria:

1. The community spouse is the annuitant, and

2. The state is named in the proper position as a remainder beneficiary.

The purchase shall be treated as a countable resource if it meets one or both of the following:

1. The annuity can be cancelled or revoked; or

2. The annuity is assignable.