I have been searching various websites looking for additional information on the requirements of moving proceeds from the sale of a home to an annuity and as of yet I can't find anything on this. Briefly our situation is this: My mother and step father have been moved into separate facilities due to differing levels of required care. My mother is in a SNF facility, he is in a elder community apartment. They just accepted an offer on their home so the sale is pending. His family has already looked into the Aid and Attendance benefit through one of the myriad 3rd party financial companies providing guidance on this program (they qualify by the basic requirements) and are telling us in our family about the requirement to put the house sale proceeds in an annuity to be doled out (under the control of whom exactly?) based on need for coverage of the costs of their care. They currently (combined) have less than 40,000 in cash prior to the home sale, and that will empty quickly. Can someone please explain or point me to some information that explains this requirement? I need to understand why this is a requirement, what happens to the money when they pass, what agency (I presume the VA) is holding that money 'hostage' and what is the cost of that? Surely if we turn over 200,000 somebody is taking a piece of that pie. Thank you.