People who inherit an annuity may be able to exchangeinherited contracts for higher contracts. A higher contract may be cheaper, andhave options that are more advantageous. Therefore, the beneficiary does nothave to be bond by the deceased’s contract. Scott Stolz, president of RaymondJames Insurance Group explained “Advisors with clients in this situation shouldwork with their firm’s people who are knowledgeable about annuities so that allthe options can be considered.” Previously, people would choose to annuitizethe contract within the year or remove the funds within five years and pay thetax on the gains.
See Donald Jay Korn IRS Approves Post -Death Annuity Exchange, Accounting Today, Aug. 20, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
