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West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 57 Chapter 24 Long Term Care

24.8.2.E.1 Annuity-Related Transfers ➢ Institutional Spouse is Annuitant An annuitant is defined as a person who receives an annuity. Establishment of an annuity is treated as a transfer of resources, unless the annuity meets the following criteria: • The individual disclosed to the State any interest the individual or his spouse has in any annuity; • The State is named as the remainder beneficiary, or as the second remainder beneficiary after a community spouse or minor or disabled adult child, for an amount at least equal to the amount of Medicaid benefits provided when the annuity is purchased by an applicant/client or spouse; • The annuity was purchased by or on behalf of the individual and one of the three following situations applies: 1. The annuity is considered either: ▪ An individual retirement annuity (according to Section 408 (b) of the Internal Revenue Code of 1986 (IRC); or ▪ A deemed Individual Retirement Account (IRA) under a qualified employer plan (according to Section 408§ of the IRC). OR 2. The annuity is purchased with proceeds from one of the following: ▪ A traditional IRA [IRC Section 408 § (a)]; or ▪ Certain account or trusts which are treated as traditional IRAs [IRC Section 408§(c)]; or ▪ A simplified retirement account [IRC Section 408 § (p)]; or NOTE: When an individual is approved for LTC Medicaid and has an excluded annuity described below, for which Medicaid must be the beneficiary, the Worker must securely forward a copy of the trust document and the Medicaid recipient’s name, case number, and name of the recipient’s Power of Attorney or legal representative, if applicable, to the current contract agency for Estate Recovery. Information about this agency is in Chapter 24, Appendix E.