At What Point Does the Beneficiary to an Annuity Acquire Rights?

Published August 5, 2019

The beneficiary to an annuity acquires rights upon the death of the owner. In most cases, the beneficiary will receive a lump sum cash refund of the contract, although, with certain annuity contracts, the beneficiary can take over the policy as the owner for the remainder of the term. Annuities typically avoid the probate process when there is a named beneficiary.

If you recently acquired the rights to an annuity as a beneficiary, please feel free to contact our team at [email protected] with any questions.

If you’re interested in reading more, here are several articles that provide overviews of different types of annuities. 

Interested in getting more of these insights delivered right to your mailbox? Sign up for our newsletters.

 

Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.

Related Articles

Annuity Basics

Annuity Tax Forms for Qualified and Non-Qualified Income Annuities

Qualified and non-qualified income annuities have differing tax treatment, meaning that once your retirement income has begun you will receive different tax forms reporting the amount of income generated from your qualified or non-qualified annuity. Here are the tax forms for your annuity and when you can expect to receive them.

Longevity

Good Annuities

A classic, good annuity is one that provides guaranteed income for as long as you live. It’s a way to diversify your portfolio, and make sure that your basic retirement expenses will be covered. But beware of market-based annuities that promise too much and don't deliver good value.