5633.2 Assessment Process

The agency shall determine the availability and fair market value for each annuity as described above. See Policy Memo, 2008-03-02, Re: Availability of Non-assignable Annuities ,

Availability - All annuities (except Retirement Annuities) are presumed to be an available resource, including those reported to be non-assignable. The right to either the principal or income stream from an annuity is considered a countable resource for purposes of this provision. If the annuity can be sold, assigned, encumbered or structured so that the benefit of the annuity can be received by someone other than the designated beneficiary, the annuity is considered available and will be assigned a value. If the individual can furnish evidence from a reliable source that the annuity or the income stream from the annuity is not able to be received by someone other than the designated beneficiary, the annuity will be reevaluated. Reliable sources concerning the availability of the annuity or income stream include banks and other financial institutions, insurance companies, brokers, and others who are involved in the purchase or sale of annuities or the income stream from an annuity as part of their business or profession. An alternate determination of availability provided by the individual which is accepted by the agency shall replace the initial agency determination for all purposes. The agency may choose to reject the alternate determination offered if it appears there has been a lack of good faith by the individual. Should the agency disagree with the alternative determination of availability provided by the individual; additional determinations may be solicited from the sources described above. If the agency can determine that the annuity would be able to be sold, assigned, encumbered or the benefits transferred to someone other than the designated beneficiary of the annuity, the annuity shall be considered available and subject to valuation as described below.

Valuation - Each annuity shall initially be assigned a fair market valuation by the agency as described above: Revocable Annuity - The fair market value of a revocable annuity is the cash value of the annuity. The ES-3167A form shall be used to obtain the cash value from the issuing company. Irrevocable Annuity - The fair market value of an irrevocable annuity is the amount yet to be paid out under the terms of the contract. The W-10, Annuity Evaluation Worksheet , shall be used to calculate that amount. If the individual can furnish evidence from a reliable source demonstrating the annuity has a lesser fair market value than that determined by the agency, the value shall be reevaluated. Reliable sources concerning valuation of the annuity include banks and other financial institutions, insurance companies, brokers and others who are involved in the purchase or sale of annuities or the income stream from an annuity as part of their business or profession. An alternate valuation provided by the individual that is accepted by the agency shall replace the initial agency valuation for all purposes. The agency may choose to reject the alternate valuation if it is determined there has been a lack of good faith by the individual. Should the agency disagree with the alternate valuation provided by the individual, additional valuations may be solicited by the agency from the sources described above. The highest value of those valuations shall be used to replace the initial agency valuation for all purposes. NOTE : An annuity shall not be excluded or exempted from consideration as a resource simply because the cancellation of the annuity contract or the sale of the annuity, or the income stream from the annuity, may result in a financial hardship for the individual.