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.
Refusal Letters are letters from secondary market annuity buyers indicating their inability to purchase an annuity contract due to its restrictive provisions. They confirm whether an annuity is irrevocable, non-assignable, or contain any cash value. In Medicaid planning, some states may require this additional documentation to secure the viability of Medicaid Compliant Annuity.
Refusal Letters may also be helpful in the case on an existing, non-compliant annuity owned by your client. Many of these old 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.