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An appeals court ruled that an annuity from a deceased Medicaid recipient is transferred to the state and not the recipient’s estate. When the annuity was purchased, the state was named primary beneficiary. However, the estate did not have enough funds to cover the burial expenses and argued that “the annuity contract is void because it violates clear public policy on priority of payment of claims.”
The Iowa Court of Appeals affirmed the trial court’s judgment that the annuity was not subject to claims against the estate.
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