5633 Treatment of the Annuity

Each annuity must be evaluated to determine the terms of the contract. Those terms will determine if the annuity is an available resource and the potential fair market value of the annuity.

NOTE : All annuities (except for Retirement Annuities) must also be evaluated under the Transfer of Property provisions of 5720 . Any annuity has the potential to be counted as a resource or income, including those not subject to a transfer penalty. A determination that the purchase of an annuity is an appropriate transfer does not prevent it from being considered as a resource or income.