A beneficiary can be designated by the owner or automatically assigned through the policy or contract. It’s essential to understand who these beneficiaries are and how they will be affected by the annuity payments to best plan for retirement income needs, says The Salisbury Post’s recent article entitled “What exactly is a beneficiary?” Let’s look at the different types:
Annuity owners should keep their beneficiaries up to date by making sure they’re aware of changes in their lives such as marriages, divorces, the births or adoptions of children, the deaths of a loved ones, or any other relevant life events that may impact the ownership and/or distribution of the annuity policy.
It’s also important to think about the tax implications for everyone involved and how the funds should be allocated should something unexpected happen.
By understanding annuity beneficiaries and taking the time to name them correctly, an annuity owner can be sure the recipients receive the funds from the annuity in accordance with their wishes.
It is important to speak to an experienced estate planning attorney for more information about annuities to help protect both you and those closest to you in the future.
The Law Offices of Claude S. Smith, III
Reference: Salisbury Post (Feb. 26, 2023) “What exactly is a beneficiary?”
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