Contact your annuity company and let your account manager know you want to change the owner of your contract. The annuity company will send you a change of ownership form. Fill out the change of ownership form for your annuity.
Do living annuities form part of an estate?
One of the key features of a living annuity is that your investment can be left to your nominated beneficiaries and does not form part of your deceased estate. The capital of the living annuity falls outside of the deceased estate and will therefore not attract estate duty.
What happens to the money in an annuity when the owner dies?
What happens to the money in an annuity after the owner dies depends on the type of annuity and its specific provisions. Some annuities stop payments when the owner dies, while others continue to pay out to a spouse or other beneficiary. The annuitant decides on the provisions at the time the contract is drawn.
Can a beneficiary of an annuity be a surviving spouse?
If an annuity contract has a death-benefit provision, the owner can designate a beneficiary to inherit the remaining annuity payments after death. Earnings on inherited annuities are taxable. How they’re taxed depends on the annuity’s payout structure and whether the beneficiary is the surviving spouse or someone other than the spouse.
Can you take money out of an annuity at any time?
You can take your money out of an annuity at any time, but understand that when you do, you will be taking only a portion of the full annuity contract value. You must account for taxes, surrender charges or discount rates depending on whether you choose to withdraw your funds or sell your annuity in its entirety for a lump sum of cash .
What to do with an annuity in a divorce?
Let one spouse keep the annuity intact and give the other spouse an asset of equal value. If there is a living and/or death benefit involved, the value is likely to be more than just the account value. You can be of further assistance by helping your client (or the attorney) put a value on the annuity.
