When You Reach Out
We’ll Be Here for You
Every Step of the Way

NJ Resident Found Eligible For Medicaid Despite Making A Gift And Owning An $80,000 Annuity


In response to a recent New Jersey Administrative Law decision, New Jersey’s Medicaid agency held that a Medicaid applicant who made a substantial gift and purchased an annuity to help pay for the resulting ineligibility period will be eligible for benefits. M.W. v. Division of Medical Assistance and Health Services (N.J. OAL Docket No. 2998-2013, Jan. 28, 2014).

A nursing home resident purchased an irrevocable, actuarially sound, non-assignable annuity for $80,010.58. The annuity named the State of New Jersey as the remainder beneficiary. The resident also gifted $43,190.53 to her son. She applied for Medicaid, and the State denied her application. Initially, the State reasoned that because she made the resources unavailable by purchasing an annuity, the annuity was an available resource to her.

For a legal consultation, call 856 770 2744

The resident appealed and requested a fair hearing which is the process to challenge a denial from the County Board of Social Services. The administrative law judge (ALJ), at fair hearing, reversed the denial of the Medicaid application, finding that the annuity was not an available resource because it could not be converted into cash.

The Director of the Division of Medical Assistance and Health Services affirmed the ALJ’s decision finding that under State law, the annuity is not an available resource.

This presents our clients with a unique opportunity to engage in asset protection strategies in order to preserve assets for future generations without depleting life savings to pay for long term care services.  If you are concerned with the high cost of long term care and would like a consultation to review your options, please feel free to call attorney Charles Bratton for a consultation at 856 770 2744 or fill out our online contact form.

Call 856 770 2744 or complete the Contact us form

Medicaid Blog Posts:

What Do you Do if The Medicaid Application is DeniedFiling a Medicaid application, especially without the assistance of an attorney, is an arduous task. Five years of account statements from the applicant must be supplied, along with identification

Plan Ahead Before Seeking Nursing Home Care: Avoid Unnecessary Debt for You and Your FamilyMany senior citizens may need the services of a nursing home or at-home care at some point in their life. You might assume that government assistance or health insurance will step in and cover the

Do you Need a Lawyer to Help You Apply for Medicaid?Do You Need a Lawyer to Help You Apply for Medicaid? The reality in the United States is this: a sizable percentage of people will eventually need some form of long term care. The cost of nursing

New Medicaid and Medicare Figures for 2023For those individuals receiving SSI or Medicaid, the Centers of Medicare and Medicaid Services (CMS) has released its SSI and Spousal Impoverishment Standards for 2023. The official spousal

Related Articles