Inherited Annuity | What Are Your Options? - YouTube

Hey! Stan The Annuity Man, America's Annuity Agent. License in all 50 states.

And that is including yours. Yes, yours. I'm licensed there as well. So, you can

always contact me at theannuityman.com. What we're talking about today is pretty,

pretty interesting subject because there's a lot of people getting older.

We're living longer. 10,000 baby boomers every single day are reaching retirement

age. And a lot of people are calling me because they've inherited an annuity. So,

what do you do? What are your options? We're going to cover that in some of the

recent laws that affect inherited annuities. And what you need to know so

you can make an informed decision on your terms and on your timeframe. But

before all of that happens, before all of the magic happens, we need music, don't we,

producer? Don't we? Absolutely. So, hit the music now.

Okay, inherited annuity. So, you're a non- spouse. Let's talk about if you're just a

non-spouse, you've inherited the annuity. You know, all annuity companies are

different and this is kind of the basic 3 options that you have. What I would

encourage you to do in addition to calling us at theannuityman.com, I would

call the carrier if you have a statement. You know, there's an 800 number on that

statement. I would call that carrier. And you're going to get a non-sales person

on the phone. And they're going to walk you through your options, etc. And then send

us that statement and we can help you as well with what you want to do. But pretty

much, you can either get a lump sum. They'll send you the lump sum on the

accumulation value of the real money account of that. Or a lot of companies

will say, "We'll pay you out over 5 years if you want to kind of lessen the

tax below." So, that's option number 2. And then option number 3, not all

companies do this, but most. Is you can say, "Turn this into a lifetime income

stream. Annuitize it." Which means to create payments. So, once again, the 3

options that most, not all carriers, I have is lump sum or take the payment

over 5 years on that whatever that death benefit is. Okay? And then the third

thing is you can annuitize it and create a lifetime income stream. Once again, call

the carrier send us a statement the most recent statement and then get us

involved in the process so that we can make sure that you're making the right

decision that we can explain some of the nomenclature and some of the verbage

that's within those choices. Because you'll get some paperwork that

reads pretty legalistic to you. We can help you with that. Now, what's happened

in the last few months from the time of this taping, look at the date. December of

2019, the secure retirement Act was passed. And one of the things that they

change with inherited annuities is back before 2019, December of 2019. You could

do what's called a stretch IRA if you were a child, okay? Or like, if your

father had an annuity and you're the beneficiary in your child, you could

stretch that IRA. What does that mean? You're taking required minimum distributions

RMD's on your life expectancy, not your dad's in this example. With any type of

tax situation, you to talk to your local CPA or tax lawyer

to make sure you know all the eyes dotting the t's crossed. Never take tax

advice from the non tax person. Even though I've been doing this for 30

years and a number one agent on the planet, we always get your local tax

advisers involved with these types of situations especially when you're

inheriting and annuity. The other thing that you need to understand with

inherited annuity is what do you want to do with the money? What is your goal with

the money? Now, the person that originally owned it, they had their goals. You might

have different goals and so that we can line you up with that based upon what

you're trying to achieve. But just don't accept somebody's opinion. You need to

get us involved at theannuityman.com or a trusted advisor. You need to call the

carrier and get them involved and talk to their people. And then you need to

talk to your local CPA or tax lawyer and get them involved so you're making an

informed decision. Because you know, you're inheriting the annuity. You want

to make sure you're doing the right thing. And you also want to make sure

that you're not triggering taxes that don't need to be triggered, right? I've

also done a video called "What is the objective of an annuity?" Like what

annuities do. And I would encourage you to go to that video because you just

inherited an annuity, right? You need to find out what the objectives are, what,

why would they put on the planet. What do they solve for, etc. That video will help.

Another thing you wouldn't need to understand. When you inherit an annuity,

the majority of carriers will not allow you to transfer that annuity. You need to

keep that in mind as well. Once again, I can't say all, right? But you need to

contact us and we can make sure working with the carrier etcetera. But most will

not allow that. Some will but most won't. It just kind of depends on the carrier

and who you inherited the annuity from. And also too, what type of annuity. Because

you have single premium immediate annuities, deferred income annuities,

qualified longevity annuity contracts, variable annuities, fixed index annuities,

multi year guarantee annuities. You know, some of those from an income stream

standpoint if you inherited them, you might have inherited the remaining

income stream that's left. But for the deferred annuities like multi-year

guarantee annuities or indexed annuities or variables, that's when it gets a

little difficult from the standpoint of you just making decisions. Once again,

don't go fast and don't just take one person's

advice. Get everybody involved. Get your team involved. Hopefully we're part of

that team at theannuityman.com. So, you can make the right decision because your

loved one would want you to do that. And they put you down as beneficiary for a

reason. They wanted you to be taken care of and make sure that money's going to

flow to you. One more thing about when a spouse inherits an annuity. The RMDs are

going to be taken over the spouses life expectancy. But there are some occasions

at that first year depending on when they die. And I don't want to get in the

weeds here. But just understand that there might be that your or timeframe

you have to take the RMD based upon the deceased person's life expectancy. I know

that sounds crazy but there are some matchy-nations to it that we can help

you with. We're talking about taxes. The IRS it's not going to be that simple, is

it? I encourage you to contact us at theannuityman.com. You can get all

6 of my books and I think that's like 5 or 6 hundred pages of information

that I've written down for you. I will send to you for free. They also sell at

Amazon but I'll send them to you for free if you just go and give us your

shipping information. I do a podcast every week called The Annuity Man

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time on Stan The Annuity Man YouTube video channel.