Generally speaking the marital assets would include jointly owned accounts, individual no IRA accounts, IRA accounts in the nursing care resident's name, life insurance cash value, stocks, mutual funds, bonds and other like accounts. Excluded items would include among other things, a house where the community spouse lives or might live, IRA or 401k or other retirement account of community spouse, 1 car. There will be a calculation whereby the marital assets will have to spent down to the lesser of 1/2 of the marital assets or approximately $105,000 whichever is less. There are nuances in spending the funds that can serve to protect and use the available assets to the greatest extent possible. These should be explored with an experienced elder law attorney.
The immediate annuity, assuming that it qualifies as actuarially sound, will be income and the income payments will be included in determining the community spouse's income level.