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16.12 Annuities ......................................................................................................................................... 225 16.12.1 Annuity Introduction and Definitions ...................................................................................... 225 16.12.2 Treatment of Annuities as Assets or Income ........................................................................... 226 16.12.3 Long-Term Care Annuity Disclosure and Remainder Beneficiary Designation Requirements 226 16.12.3.1 Annuity Disclosure ............................................................................................................ 227 16.12.3.2 Remainder Beneficiary Designation .................................................................................. 227 16.12.3.3 Notice of Obligation to Annuity Issuer .............................................................................. 227 17.1 Divestment Defined .......................................................................................................................... 228 17.1.1 Applicable Health Care Programs .............................................................................................. 228 17.1.2 Excluded Applicants and Members ............................................................................................ 229 17.2 Evaluation of Transfers for Divestment ............................................................................................ 229 17.2.1 Exemption or Disregarded Status of Income and Assets ........................................................... 229 17.2.2 Date of Transfer ......................................................................................................................... 230 17.2.2.1 The Look Back Period .......................................................................................................... 230 17.2.2.1.1 Beginning of the Look Back Period .............................................................................. 230 17.2.2.1.2 Transfers Prior to the Look Back Period ...................................................................... 231 17.2.2.1.3 Transfers During the Look Back Period ........................................................................ 231 17.2.2.1.4 Transfers During the Look Back Period That Are Reported Late ................................. 231 17.2.2.1.5 Transfers Made by the Community Spouse Who Later Applies for Medicaid............. 231 17.2.3 Transfers That Are Not Divestments .......................................................................................... 231 17.2.3.1 Transfers for Fair Market Value .......................................................................................... 231 17.2.3.2 Transfers of Exempt Income or Assets ............................................................................... 232 17.2.3.3 Prenuptial Agreements ....................................................................................................... 232 17.2.3.4 Payments to a Relative While the Institutionalized Person Received Room and Board .... 232 17.2.3.5 Ownership Returned Before Application ............................................................................ 232 17.2.4 Determining Fair Market Value ................................................................................................. 233 17.2.5 Institutionalized Person ............................................................................................................. 233 17.2.6 Allowed Divestments ................................................................................................................. 233 17.2.6.1 Transfers Made for a Purpose Other Than to Qualify for Medicaid ................................... 233 17.2.6.1.1 Sufficient Resources to Cover Five Years of Long-Term Care ...................................... 234 17.2.6.1.2 Sufficient Resources to Cover Long-Term Care for Remaining Life Expectancy .......... 234 17.2.6.1.3 Unexpected Need ........................................................................................................ 235 17.2.6.1.4 Pattern of Gifting ......................................................................................................... 235 17.2.6.1.5 Resources Spent on Support of Dependent Relatives ................................................. 235 17.2.6.2 Trusts for Disabled Individuals ............................................................................................ 236