Illinois uses their own life expectancy tables.

ANNUITY RULES

According to the Illinois Register Volume 35, Issue 46, § 120.388, the purchase of an annuity by or on behalf of an institutionalized person or the spouse of that person shall be treated as a transfer of assets for less than FMV unless:

1. The annuity names the State of Illinois as the remainder beneficiary in the first position for up to the total amount of medical assistance paid on behalf of the institutionalized person; or
2. The annuity names the State of Illinois in the second position after the community spouse or minor child or child with a disability and is named in the first position if the spouse or a representative of the child disposes of any remainder for less than FMV.

The purchase of an annuity by or on behalf of an institutionalized person shall be treated as a transfer of assets for less than FMV unless:

1. The annuity is considered either:

a. An individual retirement annuity described in section 408(b) of the Internal Revenue Code (26 USC 408(b)); or
b. A deemed individual retirement account (IRA) under a qualified employer plan described in section 408(q) of the Internal Revenue Code (26 USC 408(q)); or

2. The annuity is directly purchased with proceeds from one of the following:

a. A traditional Ira described in section 408(a) of the Internal Revenue Code (26 USC 408(a));
b. Certain accounts or trusts treated as traditional IRAs under section 408(p) of the Internal Revenue Code (26 USC 408(p));
c. A simplified employee pension described in section 408(k) of the Internal Revenue Code (26 USC 408(k)); or
d. A Roth IRA described in section 408A of the Internal Revenue Code (26 USC 408A of the Internal Revenue Code (26 USC 408A); or

3. The annuity meets all the following requirements:

a. Was purchased from a commercial financial institution or insurance company authorized under federal or State law to issue annuities;
b. Is actuarially sound and based on the estimated life expectancy of the person (as determined under current actuarial tables published by the Office of the Chief Actuary of the Social Security Administration). Period certain annuities that pay out over a term less than the person’s expected life shall be treated as actuarially sound;
c. Is irrevocable and non-assignable; and
d. Pays benefits in approximately equal periodic payments no less than quarterly, with no deferred or balloon payments.

SPOUSAL SUPPORT RULES

According to Illinois Administrative Code 89 § 103.10, the Department of Social Services shall seek to obtain support for recipients from legally responsible individuals with the following exception: the Department shall not seek to obtain support for residents of long term care facilities if income of the spouse in the community is less than or equal to the Community Spouse Maintenance Needs Standard.

• A responsible relative who refuses or fails upon request to provide the Department with income or assets information necessary to make a determination of ability to support shall remain liable for all assistance provided to or in behalf of the recipient.
• 2013 MMNA is $2,739 x 12 months = $32,868 annual income cap in order to avoid requirement to support.

For more information please visit the Illinois Department of Human Services.

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