3.3.17 Irrevocable annuities

MED 13/103827 (01/29/2010)
Annuity that was irrevocable, non-assignable was not a countable asset, despite JG Wentworth valuation

Tags: 3 Financial Eligibility, 3.1 Income, 3.1.2 Availability, 3.2 Assets, 3.2.1 Availability, 3.2.6 Liquid assets, 3.2.6.04 Annuities, 3.3 Divestment, 3.3.13 Transfer of assets to spouse; marital property agreements, 3.3.17 Irrevocable annuities, 3.4 Spousal impoverishment, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Gary M. Wolkstein

DHA Case No. MED 13/103827 (Wis. Div. Hearings and Appeals Jan. 29, 2010) (DHS) ↓ Download PDF In general, an asset is considered available if there is some way to convert it to cash that could used for support and maintenance, including selling it on a secondary market. In this case, the petitioner bought an […] Read more

MDV 66/71635 (12/05/2005)
Irrevocable annuity not available, not a divestment

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.1 Availability, 3.2.6 Liquid assets, 3.2.6.04 Annuities, 3.3 Divestment, 3.3.17 Irrevocable annuities, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nancy J. Gagnon

DHA Case No. MDV 66/71635 (Wis. Div. Hearings and Appeals Dec. 5, 2005) (DHS) ↓ Download PDF At the time of this case, an applicant could show that an irrevocable annuity was unavailable by getting three rejection letters from companies active in the market. An unavailable annuity would then be evaluated for divestment. In this […] Read more

MDV 13/50679 (12/20/2001)
Private annuity exchanged for real estate not a divestment

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.6 Liquid assets, 3.2.6.04 Annuities, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.17 Irrevocable annuities, 3.3.18 Promissory notes – loans – land contracts – mortgages, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nancy J. Gagnon

DHA Case No. MDV 13/50679 (Wis. Div. Hearings and Appeals Dec. 20, 2001) (DHS) ↓ Download PDF A divestment is a transfer of resources for less than fair market value. In this case, the petitioner’s wife transferred her property worth $67,000 to her sons in exchange for a private annuity. The annuity had a principal […] Read more

MDV 30/35213 (12/17/1998)
“Private annuity” with balloon payment was a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.17 Irrevocable annuities, ALJ Peter D. Kafkas

DHA Case No. MDV 30/35213 (Wis. Div. Hearings and Appeals Dec. 17, 1998) (DHS) ↓ Download PDF To avoid being considered a divestment, an irrevocable annuity must include substantially equal monthly payments and no balloon payments. In this case, the petitioner transferred $103,255 to his two sons in return for a “private annuity” where his […] Read more

MDV 218743 (10/22/2025)
Failure to claim half of deceased spouse’s annuity was divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.13 Transfer of assets to spouse; marital property agreements, 3.3.17 Irrevocable annuities, 3.3.20 Refusal to claim, 3.3.22 Community spouse divestment, 3.3.22.1 Before 5 years, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Mayumi M. Ishii

DHA Case No. MDV 218743 (Wis. Div. Hearings and Appeals Oct. 22, 2025) (DHS) ↓ Download PDF A refusal to claim property of a deceased spouse that a Medicaid applicant or member is entitled to is a divestment. In this case, the petitioner’s husband used nearly all the money in a joint revocable trust to […] Read more

MDV 215927 (02/03/2025)
Annuity that could be sold on secondary market was countable, available

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.6 Liquid assets, 3.2.6.04 Annuities, 3.3 Divestment, 3.3.17 Irrevocable annuities, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Jason M. Grace

DHA Case No. MDV 215927 (Wis. Div. Hearings and Appeals Feb. 3, 2025) (DHS) ↓ Download PDF If an irrevocable annuity can be sold on the secondary market, it is a countable, available asset. In this case, the petitioner owned an irrevocable annuity but could still transfer ownership and change the beneficiary and had received […] Read more

MDV 23/99503 (01/26/2009)
Annuity without interest was divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.17 Irrevocable annuities, 3.3.18 Promissory notes – loans – land contracts – mortgages, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth D. Duren

DHA Case No. MDV 23/99503 (Wis. Div. Hearings and Appeals Jan. 26, 2009) (DHS) ↓ Download PDF Purchasing an annuity or promissory note with interest at less than the applicable federal rate is a divestment. In this case, the petitioner established a private annuity that met all other requirements but returned no interest. ALJ Kenneth […] Read more

MGE 200475 (02/08/2021)
Miscalculated MCA delayed eligibility

Tags: 1 Applications and Renewals, 1.1 Applications, 1.1.5 Begin dates, 3 Financial Eligibility, 3.1 Income, 3.1.5 Unearned income, 3.2 Assets, 3.2.6 Liquid assets, 3.2.6.04 Annuities, 3.3 Divestment, 3.3.01 Penalty period, 3.3.17 Irrevocable annuities, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Peter McCombs

DHA Case No. MGE 200475 (Wis. Div. of Hearings and Appeals February 8, 2021) (DHS) ↓ Download PDF Eligibility for MA begins the first of the month in which the applicant meets all program requirements. In this case, the petitioner planned for a divestment penalty with a Medicaid-compliant annuity, but the final annuity payment occurred […] Read more

MDV 197185 (03/02/2020)
No divestment for purchase of annuity beyond life expectancy

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.17 Irrevocable annuities, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

DHA Case No. MDV 197185 (Wis. Div. Hearings and Appeals Mar. 2, 2020) (DHS) ↓ Download PDF The petitioner’s husband bought an annuity with a term beyond his life expectancy, which is usually a divestment. The ALJ agreed with the argument, however, that the annuity was bought without the intent to qualify for Medicaid, warranting […] Read more

Tag: 3.3.17 Irrevocable annuities