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Annuities
Annuities are divided into two categories:
- OBRA ‘93 Annuities, and
- Other Annuities
Each annuity type is treated and evaluated differently. The EW must obtain the annuity contract and any other verification that substantiates investments and distributions to determine which category the annuity falls into and then follow the procedures for evaluating that type of annuity.
Characteristics of an Annuity
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OBRA ‘93 Annuity |
Other Annuity |
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Meets all the following characteristics. |
All annuities that do not meet ALL the characteristics of an OBRA ‘93 Annuity, regardless of date established. |
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Established on or after 8/11/93. |
All annuities established prior to 8/11/93. |
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Not established by will. |
May or may not be established by will. |
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Established with income, property and/or property rights of the individual or spouse. |
May or may not be established with the income, property and/or property rights belonging to someone other than the individual or spouse. |
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Established to provide periodic payments (fixed or variable) which are unconditionally payable to the annuitant. Payments may be for a fixed time period or for the lifetime of the annuitant. |
May provide a periodic payment plan different than that required for an OBRA ‘93 Annuity. |
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Established to provide payments (principal and income) which exceed the fair market value of the property used to purchase the annuity. |
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