Annuities for Wealth Transfer
Annuities have evolved to serve various purposes. They can provide benefits for LTC, Nursing Home, Unemployment, Lifetime Income, etc. Today I want to focus on Wealth Transfer. There are a handful of hybrids out there will provide a guarantee to your heirs. It works exactly like your lifetime income riders, and the death benefit will typically be distributed in a lump sum or paid over period of 5 years.
These benefits are perfect for retirees with qualified funds that are only taking RMD’s, and leaving the remainder for heirs. The benefits will also help with taxes you would pay at Death. Annuities are usually RMD friendly, and some allow the RMD’s to be taken out dollar for dollar from your Death Benefit Value leaving more $$$ for their heirs.
The big question is which annuity works for you?