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

ANNUITY RULES

According to the Minnesota Statutes, section 256B.0595 entitled Prohibitions on Transfer; Exceptions:

1. Effective for transactions, including the purchase of an annuity, occurring on or after February 8, 2006, the purchase of an annuity by or on behalf of an individual who has applied for or is receiving long-term care services or the individual’s spouse shall be treated as the disposal of an asset for less than fair market value unless the department is named as the remainder beneficiary in the first position for an amount equal to at least the total amount of medical assistance paid on behalf of the individual or the individual’s spouse; or the department is named as the remainder beneficiary in the second position for an amount equal to at least the total amount of medical assistance paid ion behalf of the individual or the individual’s spouse after the individual’s community spouse or minor or disabled child and is named as the remainder beneficiary in the first position if the community spouse or a representative of the minor or disabled child disposes of the remainder for less than fair market value.
2. Effective for transactions, including the purchase of an annuity, occurring on or after February 8, 2006, the purchase of an annuity by or on behalf of an individual applying for or receiving long-term care services shall be treated as a disposal of assets for less than fair market value unless it 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:

i. An account or trust described in subsection (a), (c), or (p) of section 408 of the Internal Revenue Code;
ii. A simplified employee pension within the meaning of section 408(k) of the Internal Revenue code; or
iii. A Roth IRA described in section 048A of the Internal Revenue Code; or

c. An annuity that is irrevocable and non-assignable, is actuarially sound as determined in accordance with actuarial publications of the Office of the Chief Actuary of the Social Security Administration; and provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments made.

The purchaser of an annuity cannot waive the right to cancel an annuity contract. (Minnesota Health Care Programs Manual § 19.25.30)

PENALTY PERIOD PARTIAL CURE DECISION

• Ellis v. Minnesota Department of Human Services

For more information please visit the Minnesota Department of Human Services website.

Print