Inheriting a Non-Qual Annuity

[padthaiforlunch]

I believe Allianz (could be an obscure non-Aviva Aviva product) has a life insurance rider that costs 60 bps per year. While contracted with them, I don't use them too often, so not really up on the details.

While annuity goes directly to the beneficiary, if the estate may pay taxes on IRD, then bene may deduct.

 

[InsureGuy5]

In my experience the answer is no. Annuities have to be 1035 exchanged from like to like as previously mentioned. Depending on the tax status of the beneficiary, it will probable be best to take the accounts over the five year period certain or through the lifetime annuitization.

 

[insuranceexec]

The major problem when taking the settlement of the 5 year period is the lack of interest that your prinicpal is NOT earning.

I have a question: "Can the bene assign the settlement?"

I have never had this question asked to me nor have I ever been told about it. What do you guys think?

 

[padthaiforlunch]

If bene wants to share with black sheep sibling, the bene can issue a 1099 to sibling, or gift after-tax.

 

[insuranceexec]

If bene wants to share with black sheep sibling, the bene can issue a 1099 to sibling, or gift after-tax.

Well very good there, Pad. Thanks

 

[arnguy]

Good post, SportsNut. Right on point!
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Good post, SportsNut. Right on point!