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

ANNUITY RULES

Various New Jersey elder law attorneys have informed Krause Financial Services that the New Jersey Administrative Code is extremely outdated, and that the state has implemented every aspect of DRA policies and procedures without actually adopting the legislation itself. As such, in accordance with 42 U.S.C. § 1396p(c)(1)(F), the purchase of an annuity shall be treated as the disposal of an asset for less than fair market value unless:

1. The State is named as the 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 State is named as such a 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.

Additionally, in accordance with 42 U.S.C. § 1396p(c)(1)(G), the purchase of an annuity shall be treated as the disposal of an asset 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 (aa) an account or trust described in subsection (a), (c), or (p) of section 408 of such code; (bb) a simplified employee pension (within the meaning of section 408(k) of such code); or (cc) a Roth IRA described in section 408A of such code; or

2. the annuity:

a. is irrevocable and nonassignable;
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.

ANNUITY DECISIONS

• M.W. v. Division of Medical Assistance and Health Services
• N.M. v. Division of Medical Assistance and Health Services
• E.F. v. Division of Medical Assistance and Health Services
• Estate of F.L. v. Division of Medical Assistance and Health Services
• E.F. v. Jennifer Velez, Commissioner, New Jersey Department of Human Services, et al.
• J.C. v. Jennifer Velez, Commissioner, New Jersey Department of Human Services, et al.

PROMISSORY NOTE DECISIONS

• A.G. v. Division of Medical Assistance and Health Services
• J.D., et al. v. Jennifer Velez, Commissioner, New Jersey Department of Human Services, et al.
• M.S. v. Division of Medical Assistance and Health Services
• Mary Sable v. Jennifer Velez, Commissioner, New Jersey Department of Human Services, et al.

PERSONAL SERVICES CONTRACT DECISION

• E.S. v. Division of Medical Assistance and Health Services

VETERANS BENEFITS DECISIONS

• Alma Galletta, et al v. Jennifer Velez, Commissioner, New Jersey Department of Human Services, et al.

To learn more about New Jersey’s rules and policies, please visit their Division of Medical Assistance & Health Services website.

Print