4 Ways an Annuity Can Help You with Estate Planning


Filed under: Retirement


Grandfather and grandchild walking in nature pathYou probably dream of leaving a legacy to your children and grandchildren, but unfortunately, it’s not so simple as just writing them a check. If you want to leave money to your heirs, you could face various challenges in the form of taxes and other complications. That’s why many aging adults are turning to annuities during their estate planning process. Many features of annuities actually lend themselves quite well to your estate plan.

Protection from creditors. In many states, annuity contracts are protected from creditors. If you’re worried about collection action, either from your own creditors or those of your children, consult with an estate planning attorney about whether an annuity can help you avoid collections.

Leave money outside of a trust. You might want to provide money to someone who is not included in your trust, or perhaps you don’t want to establish a trust for some reason. An annuity can be a good alternative.

You want to leave money to someone, but not just yet. Let’s say your children are in their twenties, and like many young people, they aren’t yet responsible enough to handle an inheritance. A deferred annuity might be the answer. You can purchase an annuity, from which payments to your beneficiaries begin at a later date of your choice. Taxes on the gains are also deferred, which could help if your trust is taxed after your death.

You don’t want to leave a lump sum of money. For one reason or another, you might be worried about leaving a large sum of money to your heirs. You might feel they are too young, or you might have other concerns. An annuity contract provides fixed payments to your heirs, so that you can gift them with financial support while knowing the money will last for as long as the contract.

For more information on estate planning, give us a call. We can help you decide upon the best way to leave a legacy for your loved ones.



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This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .