Idaho uses its own life expectancy table.

ANNUITY RULES

According to the Idaho Department of Health and Welfare Eligibility for Aid to the Aged, Blind and Disabled Manual § 03.05.838 entitled Annuity as Asset Transfer:

1. The purchase price of an irrevocable, non-assignable annuity is treated as an asset transfer, unless the following requirements are met:

a. Irrevocable Annuity Life Expectancy Test.

i. The participant’s life expectancy must equal or exceed the term of the annuity. Compare the face value of the annuity to the participant’s life expectancy at the purchase time. The annuity meets the life expectancy test if the participant’s life expectancy equals or exceeds the term of the annuity. If the exact age is not in the Table, use the next lower age (uses own life expectancy table, found in 838.02.a).

b. Annual Interest Test.

i. Any annuity is presumed to produce interest at a minimum that is equal to the treasury rate.

c. Stated Named as Beneficiary.

i. The purchase of an annuity is treated as an asset transfer unless the State of Idaho, Medicaid Estate Recovery, is named as:

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

d. Equal Payment Test.

i. The annuity must provide for payments in equal amounts during the term of the annuity with no deferral and no balloon payments made.

2. Permitted Annuity.

a. The purchase of an annuity is not treated as an asset transfer if the annuity meets any of the descriptions in Sections 408(b), or 408(q), Internal Revenue Code; or is purchased with proceeds from an account or trust described in Sections 408(a), 408(c), or 408(p), Internal Revenue Code, or is a simplified employee pension as described in Section 408(k), Internal Revenue Code, or is a Roth IRA described in Section 408A, Internal Revenue Code.

ESTATE RECOVERY DECISION

• the Matter of the Estate of Perry

For more information please visit Idaho’s Department of Health and Welfare website.

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