When a person inherits assets there are often tax implications that they need to consider. There are a whole host of complicated tax aspects that come with non-qualified annuities and it is important to carefully understand all of the rules that apply. There are different tax rules in place for spouses and non-spouses when it comes to inherited annuities. “The surviving spouse often has the right to continue the annuity contract, in which case, the death of the original annuity holder has no immediate tax consequences.” For non-spouses the tax implications will often depend on the heir’s payout choice. The laws governing whether an heir can switch annuities are complex and it is important to carefully consider them. It is also important not to overlook the $15,978 Social Security bonus that this article discusses.
See Tax Rules for an Inherited Non-Qualified Annuity, The Motley Fool, December 19, 2015.
