Not sure I fully understand all of the circumstances...
Do they want to tax shelter the assets?? or lower their spendable assets?
Does this $80k include assets such as home or car?
The immediate annuity idea may be good if it keeps them below the income level... assuming there is an income qualification.
If the situation is that they need to transfer $60k into some asset they still own and legally and get down to $80k... then first identify the legal belongings that are exempt. For example, if the house is exempt, perhaps they can use the money for something needed on the house to maintain its value or enhance it. This could be large recurring expenses that will soon be needed like furnace replacement, roof, etc.
They need to make sure the expenditure of the money is legitimate (to be on the right side of things). Not to mention that it would be embarrassing to be rejected if the organization does a historical account check during the qualification.
They could just wait to qualify and spend down the $60k on living expenses... That is probably why they saved it.
I always thought our home would look nice with a 14k G water faucet... Although gold prices are too high for me.