NOTICE: AN ELDER LAW ATTORNEY MUST BE INVOLVED IN ALL FLORIDA INSURANCE PRODUCT PURCHASES IF USED FOR MEDICAID PLANNING PURPOSES, PURSUANT TO THIS ADVISORY OPINION.

Florida uses its own Medicaid life expectancy tables.

RELEVANT BLOGS

• The Commonwealth of Virginia Does NOT Need to be Named as a Beneficiary on Tax-Qualified (IRA) Annuities! (may also work in Florida)
• Florida PSK Planning: Increase Control and Reduce Taxes
• Improved Planning Technique: Funding a PSK with an Annuity

PERSONAL SERVICES CONTRACT PLANNING

Don’t forget about using an annuity to fund a personal services contract! See the benefits of doing so here, as well as the simplified technique.

ANNUITY RULES

According to the Florida Department of Children and Families Medicaid Eligibility Manual section 1640.0609.03 entitled Transfers to Annuities on or After 11/14/07 (MSSI):

1. Applicant’s or Recipient’s Annuity

a. The purchase of an annuity on or after 11/01/2007, and within the look-back period, by an individual (or his representative) will be considered a transfer of assets for less than fair compensation unless the annuity meets all of the following requirements:

i. Names the State of Florida, Agency for Health Care Administration (AHCA), as the primary beneficiary, for the total amount of medical assistance paid on behalf of the individual, except for when the individual has a spouse or minor or disabled adult child. In this case, the state shall be named as secondary beneficiary after the spouse and/or the minor or disabled child.
ii. Is irrevocable (cannot be cashed in) and nonassignable (cannot be sold or transferred to a third party).
iii. Makes payments (that include both principal and interest) to the individual in equal amounts during the term of the annuity, with no balloon or deferred payments.
iv. Is actuarially sound based on the actuarial tables used by the Social Security Administration.

2. Community Spouse’s Annuity

a. The purchase of an annuity on or after 11/01/2007 (and within the look-back period) by the community spouse of an applicant of ICP, institutionalized MEDS-AD, institutionalized Hospice, HCBS Programs and PACE will be considered a transfer of assets for less than fair compensation unless the annuity meets the criteria below:

i. Names AHCA as the primary beneficiary for the total amount of medical assistance paid on behalf of the applicant/recipient spouse, except for when the spouse has a minor or disabled child. In this case, AHCA shall be named as secondary after the minor or disabled child.
ii. Is actuarially sound based on the spouse’s age on the actuarial table used by the Social Security Administration.

b. Annuities purchased by the community spouse after approval of long-term care Medicaid for the applicant spouse are not evaluated for transfer of assets provisions.

Exception: IRAs established by an employee or employer are not considered under the transfer of assets provision and are not required to name the state as the primary remainder beneficiary in accordance with the paragraphs above.

To learn more please visit Florida’s Department of Children and Families website.

To see Florida’s Medicaid Manual click here.

 

Print