A Medicaid Compliant annuity is an annuity that has been annuitized, is irrevocable and unassignable, and that typically has the state department of Medicaid in the position of primary beneficiary up to the amount of money the state has paid out in benefits for a Medicaid recipient during their lifetime. There are some exceptions where the state may be named as the contingent beneficiary and a surviving spouse may be named as the primary beneficiary, but it is important to talk to an Elder Law Attorney about the Medicaid regulations in your state to determine how best to qualify for benefits. Medicaid Compliant annuities are frequently used as a tool by Elder Law attorneys in obtaining qualification for nursing home or assisted living Medicaid benefits for their elderly clients in need of long term care.