If you are looking for an annuity to avoid probate, you have come to the right place. This guide will discuss the different types of annuities that can help you avoid probate and make the process easier for your loved ones. We will also provide a few tips on choosing the right annuity for your needs. So, without further ado, let’s get started!
What Is Probate?
Probate is the legal process of distributing a person’s assets after death. This can be lengthy and expensive, so many people try to avoid it. One way to do this is by purchasing an annuity.
Why Do People Want To Avoid Probate?
There are a few reasons why people may want to avoid probate.
- The first is that it can be a lengthy process, which can take months or even years to complete. This can be frustrating for loved ones trying to settle an estate.
- Additionally, the probate process can be expensive, as court fees and other expenses must be paid.
- Finally, probate is a public process, meaning the deceased person’s assets are available for anyone to see. This can concern people who want to keep their affairs private.
Which Annuities Avoid Probate?
The two types of annuities that can avoid probate are joint annuities and beneficiary annuities. Joint annuities are purchased by two individuals and provide a guaranteed income stream for the rest of their lives. Then, when one annuitant dies, the surviving annuitant continues to receive the guaranteed income stream without going through probate.
Beneficiary annuities are purchased with a named beneficiary who will receive the guaranteed income stream after the annuitant’s death. The beneficiary can be changed at any time, and the annuity bypasses probate and is paid directly to the named beneficiary.
Types of Annuities That Avoid Probate
Generally, all annuities can avoid probate. However, two main types of annuities can help you avoid probate:
- Immediate annuities: With an immediate annuity, you make a lump-sum payment to the insurance company, and in return, they begin making payments to you immediately. This can be a good option if you want retirement income or leave money to your beneficiaries without going through probate.
- Deferred annuities: With a deferred annuity, you make periodic payments into the account, and the insurance company does not begin making payments until later. This can be an excellent option to grow your money over time.
How to Choose the Right Annuity for You
When choosing an annuity, it’s essential to consider your financial goals and needs. For example, do you want a guaranteed income stream for life or the potential for higher returns? Do you want to avoid probate, or is that not your concern? You can narrow your options by answering these questions and choosing the right annuity for your unique situation.
An annuity may be the right solution if you are looking for a way to avoid probate. Contact us today for a free quote, and we can help you find the best annuity to meet your needs. We understand this is a difficult time, and we want to make the process as smooth as possible.
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