Refusal Letters are letters from secondary market annuity buyers indicating their inability to purchase an annuity contract due to its restrictive provisions. These letters confirm if an annuity is irrevocable, non-assignable, or has cash value. In Medicaid planning, some states may require this additional documentation to demonstrate the viability of a Medicaid Compliant Annuity..
Refusal Letters may also help in the case on an existing non-compliant annuity owned by your client. Many of these annuities cannot be sold or altered but do not meet the typical Medicaid Compliant Annuity requirements. In these cases, Refusal Letters can support your client’s case for undue hardship and may help them gain eligibility for benefits.
A REFUSAL LETTER MAY BE RIGHT FOR YOUR CLIENT IF THEY:
Own an annuity that cannot be sold
Are seeking Medicaid benefits
Need assistance in proving the terms of their contract