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Program |
Manual Section |
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ALTCS FTW - ALTCS |
Determine the amount of potential uncompensated value as follows:
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Step |
Action |
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1 |
Verify the amount of the income and the frequency of the payments. |
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2 |
Convert the income to a yearly amount. |
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3 |
Using the Period Life Table (from socialsecurity.gov), find the annuitant’s age in the “Exact Age” column on the left. |
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4 |
Follow the row for that age across to find the life expectancy in years for the annuitant’s gender. |
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5 |
Multiply the yearly income amount by the customer’s life expectancy. |
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6 |
The result is the amount of uncompensated value. |
Example:
Effective 05/01/03, the customer irrevocably assigned a stream of income of $390 per month to his granddaughter. He was 77 years old in 05/03 and his life expectancy was 8.29 years. The yearly amount of income was $4,680 ($390 X 12 = $4,680). The uncompensated value for this transfer is $38,797.20 (8.29 X $4,680 = $38,797.20).