Connecticut uses the life expectancy tables published by the Office of the Actuary of the Social Security Administration, here.

RELEVANT BLOGS

• Protecting the Community Spouse’s IRAs
• Lopes v Dept. of Social Services – Another Win

ANNUITY RULES

According to the Connecticut Department of Social Services Uniform Policy Manual Transmittal UP-07-02:

The Department shall consider the purchase of an annuity by, or on behalf of, an annuitant who has applied for nursing facility or other long-term care services to be a transfer for less than fair market value unless:

1. The annuity is:

a. An annuity described in subsection (b) or (q) of section 408 of the Internal Revenue code of 1986; or
b. Purchased with proceeds from an account or trust described in subsection (a), (c), or (p) of section 408 of such Code; a simplified employee pension (within the meaning of section 408(k) of such Code); or a Roth IRA described in section 408A of such Code; and
c. The Department is:

i. Named as a remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the annuitant; or
ii. Named as a remainder beneficiary in the second position after the community spouse or minor or disabled child and is named in the first position if such spouse or a representative of such child disposes of any such remainder for less than fair market value; or

2. The annuity:

a. Is irrevocable and non-assignable; and
b. Is actuarially sound (as determined in accordance with actuarial publications of the Office of the Chief Actuary of the Social Security Administration); and
c. Provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments made; and
d. The Department is:

i. Named as a remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual; or
ii. Named as a remainder beneficiary in the second position after the community spouse or minor or disabled child and is named in the first position if such spouse or a representative of such child disposes of any such remainder for less than fair market value.

The Department shall consider the purchase of an annuity by, or on behalf of, the community spouse of an individual applying for medical assistance for a nursing facility services or other long-term care services, to be a transfer for less than fair market value unless:

1. The Department is named as a remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual; or
2. The Department is named as a remainder beneficiary in the second position after the minor or disabled child and is named in the first position if such child or a representative of such child disposes of any such remainder for less than fair market value.

The department shall consider any payments made from an annuity purchased with the assets of an applicant or recipient of long-term care medical services, or his or her spouse, as an asset transferred for less than fair market value unless the payment is made to:

1. The applicant or recipient of long-term care medical services; or
2. The spouse of an applicant or recipient of long-term care medical services; or
3. The child of an applicant or recipient of long-term care medical services or his or her spouse, provided such child is considered blind or disabled under the criteria for SSI eligibility; or
4. A trust as defined in 4030.80, D.1.

ANNUITY DECISION

• Lopes v. Starkowski
• Lopes v. Starkowski Amicus Court Brief

For more information, please visit the Connecticut Department of Social Services.

Click here for Connecticut Desk Reference PDF

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