Method 2 - Step 1
Like Method 1, the first step of the Method 2 evaluation process is to determine whether the annuity is a commercial annuity.
Definition: An annuity that is purchased and set up via an insurance company or financial institution licensed or regulated by the Minnesota Department of Commerce or a similar agency of another state.- If the annuity is a commercial annuity, continue to Step 2.
- If the annuity is not a commercial annuity, an uncompensated transfer has occurred and an uncompensated transfer amount must be calculated.
The uncompensated transfer amount is the amount of the funds the client and/or the client’s spouse annuitized minus any annuity payments already received.
No further evaluation is required after a transfer has been identified in this step.
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Transfer Evaluation - Evaluation Method 2