13 Estate Planning Situations That Call for an Annuity

Many estate plans are designed with the purpose of providing assets for an individual’s loved ones. One popular estate-planning tool through which this goal is often accomplished is the annuity. A recent article discusses 13 situations in which an annuity is the ideal estate-planning tool.

  1. Purchase of a Single Premium Immediate Annuity (SIPA) by a Credit Shelter Trust
  2. Purchase of an Immediate Annuity for Heirs Outside a Trust
  3. Purchase of a Deferred Annuity for Heirs
  4. Purchase of a SPIA by the Estate Owner for the Estate Owner and Spouse
  5. Using a Variable Deferred Annuity to Provide Death Benefit to an Uninsurable Estate Owner
  6. Using the Guarantees in a Deferred Annuity to Provide Portfolio Insurance
  7. Using the Guaranteed Income of an Immediate Annuity to Reduce Retirement Portfolio Failure Rate
  8. Using Annuities to Maintain Tax Deferral, and Control, from Beyond the Grave
  9. Using a SPIA to Provide for a Longtime Household Employee
  10. Using a SPIA to Fund a Small Bequest
  11. Purchase of a SPIA by a Trust for the Benefit of Children and not His and Hers
  12. Using a Deferred Annuity to Fund a QTIP Trust
  13. Using a Variable Annuity to Fund a Charitable Remainder Unitrust

If any of these situations apply to you, consider contacting your estate-planning attorney to discuss whether a new or restructured annuity could provide further benefit to your estate plan.

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