3) Annuity Payments

The customer purchased an irrevocable annuity in 2012 that pays $1,500 per month. Payments are currently being paid to the customer's son. According to the annuity contract, the customer may change who receives payments from the annuity at any time.

The annuity payments are revocably assigned, so they are considered constructively received. The payments are counted as income to the customer. Payments made to the customer's son during the transfer look-back period must be reviewed as potential transfers ( MA902A ).