Think Twice About Naming Anyone As Your Sole Primary Beneficiary
Thinking about who to name as a beneficiary could be tricky, especially if you’re planning on naming anyone other than your spouse.
That’s because your spouse will have more advantages over the annuity after you die. They can either take ownership of the annuity by continuing it without a taxable even or they can file a claim to take distributions as a spousal beneficiary.
Non-spouses do not have the option of assuming ownership of the annuity. Their only option is to pay income tax on the increase in value of the annuity when it is distributed to them. This may turn into a huge financial hindrance to them.
