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.
- Purchase of a Single Premium Immediate Annuity (SIPA) by a Credit Shelter Trust
- Purchase of an Immediate Annuity for Heirs Outside a Trust
- Purchase of a Deferred Annuity for Heirs
- Purchase of a SPIA by the Estate Owner for the Estate Owner and Spouse
- Using a Variable Deferred Annuity to Provide Death Benefit to an Uninsurable Estate Owner
- Using the Guarantees in a Deferred Annuity to Provide Portfolio Insurance
- Using the Guaranteed Income of an Immediate Annuity to Reduce Retirement Portfolio Failure Rate
- Using Annuities to Maintain Tax Deferral, and Control, from Beyond the Grave
- Using a SPIA to Provide for a Longtime Household Employee
- Using a SPIA to Fund a Small Bequest
- Purchase of a SPIA by a Trust for the Benefit of Children and not His and Hers
- Using a Deferred Annuity to Fund a QTIP Trust
- 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.