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F-420 Division of Welfare and Supportive Services TRANSFER OF ASSETS Medical Assistance Manual ANNUITIES 23 Oct 01 MTL 04/23 Staff shall determine the maximum spousal need allowance of the community spouse, if applicable. If the monthly payment amount provided by the annuity to the community spouse exceeds the maximum spousal need allowance, the amount of the annuity which causes the monthly annuity payment to exceed the maximum spousal need allowance shall be considered a transfer without fair consideration in determining the institutionalized spouse’s eligibility. This subsection applies only to the extent the transferred amount causes the community spouse resource allowance to exceed the maximum.
Staff shall determine if the applicant/customer is receiving substantially equal installments from the annuity for the period of the annuity. If the annuity is not paid in substantially equal installments, the original purchase price of the annuity shall be considered as a transfer without fair consideration.
If an annuity was purchased more than 36 months prior to the date of application, the penalty period for a transfer without fair consideration has expired. Any income received from the annuity shall be considered as income in the month received.
If an irrevocable annuity is purchased by a Medicaid applicant/customer, or their spouse, and the return or benefit from the annuity is transferred to a third party, a transfer of assets without fair consideration exists for the total amount of the annuity.
If a revocable annuity is purchased by a Medicaid applicant/customer, or their spouse, the total amount invested in the annuity is considered as a countable resource. Once it has been determined a transfer of assets without fair consideration exists, the penalty period shall be calculated as shown below.
An annuity purchased by the applicant/customer must name their spouse as the beneficiary, and if unmarried, Medicaid is the beneficiary, otherwise a transfer of assets without fair consideration exists for the total amount of the annuity.