Ask Terry Questions Annunity Beneficiary

Annunity Beneficiary

By Terry Savage on August 20, 2022 | Insurance & Annuities

I have a $300k annunity. I want to leave to my niece and nephew. My husband just died. How can they limit their tax implications

Terry Says

That depends on whether the annuity was purchased inside a retirement account or not. And whether the annuity is structured in a way that allows you to name a beneficiary. Ask your agent about that. Not all annuities allow you to name a beneficiary.

It also depends on whether the owner had started taking a stream of payments (annuitization). So this is a complex situation. If you aren’t in touch with your original agent, contact Stan Haithcock at www.StantheAnnuityMan.com and he will be able to advise you on how to handle this, based on the specifics of your situation.

In general, inheritances are not taxable to the recipient. And the decedent (or the estate) does not owe taxes unless the total estate is nearly $12 million!

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