Get Is The Annuitant The Beneficiary

Most annuities allow the contract owner to change the annuitant at any time. The annuitant is the individual named under the annuity contract whose life will serve as the measuring life to determine benefits to be paid out under the contract.

When an annuity contract transfers from one individual to another, the transferred amount is treated as a distribution. The original owner is taxed on any tax-deferred gain and possibly subject to a 10% penalty. But this doesn't usually apply when annuity contracts transfer between spouses or former spouses.

The new owner of the annuity can start receiving payments, change beneficiaries, and cash out the policy whenever they want. To give the annuity away, you simply contact the insurance company and state that you want to gift the ownership of the annuity policy to someone else or a trust.

Most annuities allow the contract owner to change the annuitant at any time. The annuitant is the individual named under the annuity contract whose life will serve as the measuring life to determine benefits to be paid out under the contract.

Differences between Annuitant and Beneficiary An annuitant is an individual who receives regular periodic payments during a specified period of time of an annuity contract. On the other hand, a beneficiary is a person who receives the annuity benefits in case of the annuitant's death.

The annuity contract owner is the person who owns the contract, pays the premiums, and has various rights, including the power to choose a beneficiary to receive any survivor payments. The owner may take money out of the contract at any time and give it to someone else, sell it, or surrender it.

Whereas the annuity owner and the annuitant may be the same person, a beneficiary is a separate person or entity. The beneficiary is the person who is entitled to the remaining cash-value of the annuity upon the death of the annuitant or annuitants.

Most of the time, the annuitant is also the contract owner, but they can be different. For example, the contract owner, such as the beneficiaries, decides about the annuity. If the annuitant is different from the contract owner, the annuitant can not decide about the annuity contract.