Can Fixed Annuities Be Inherited?

Shawn Plummer

CEO, The Annuity Expert

Can Fixed Annuities Be Inherited?

Yes, fixed annuities can be inherited.

When the owner of a fixed annuity passes away, the remaining balance or value of the annuity can be passed on to the designated beneficiaries. This inheritance is subject to certain rules and conditions.

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Understanding Inheritance of Fixed Annuities

  1. Beneficiary Designation: The annuity owner must name a beneficiary or multiple beneficiaries who will inherit the annuity.
  2. Payout Options: Beneficiaries may have various options for receiving the inherited amount, such as lump-sum payments or continued annuity payouts.
  3. Tax Implications: Inherited annuities may have tax consequences for the beneficiary, depending on the type of annuity and the manner of payout.
  4. Transfer Process: The process of transferring the annuity to the beneficiary typically involves submitting a claim to the annuity provider, along with required documentation.

Find out how much you’ll receive each month by using our annuity payment calculator.

Key Features of Inheriting a Fixed Annuity

FeatureDescription
Beneficiary RightsRight to receive remaining annuity value
Payout OptionsLump-sum, continued payouts, or other options
Tax ConsiderationsPotential income tax on payouts
Transfer ProcessClaim submission and documentation required

Conclusion

Fixed annuities are inheritable assets, allowing beneficiaries to receive the remaining value of the annuity upon the owner’s death. The inheritance process involves beneficiary designation, understanding payout options, and being aware of potential tax implications. For more detailed information and assistance in managing inherited fixed annuities, contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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