Sentences with phrase «as owner of an annuity»

A corporation may be named as owner of an annuity contract provided the following conditions are met: 1.

Where as owners of an annuity die broke because all the principal is lost, the owner of a Reverse Mortgage need only pay back the borrowings and accrued interest.

A corporation may be named as owner of an annuity contract provided the following conditions are met: 1.

Not exact matches

For example, if the original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain of $ 50,000 is taxed as ordinary income to the beneficiary.

As an investment product, an annuity is a financial instrument that pays out a sum of money to its owner over the course of a number of years.

Because in addition to interest and return of a portion of your principal, each annuity payment effectively contains an extra little amount known as a «mortality credit» — essentially, money transferred from annuity owners who die early to those who live long lives.

For example, if the original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain of $ 50,000 is taxed as ordinary income to the beneficiary.

If you inherit an annuity, the same portion of each payment will be taxable or tax - free as was true for the original owner.

But as the stock market tanked from 2007 through early 2009, owners of these annuities were able to limit their stock market - related losses.

You (the annuity owner) make a lump - sum payment or a series of premium payments to an annuity issuer (the insurance company), which will accumulate earnings at a fixed interest rate (a fixed annuity) or a variable rate determined by the growth (or losses) in investment options known as subaccounts (a variable annuity).

If the beneficiary is the surviving spouse of the owner, to treat the annuity as his / her own.

(It is a good idea for annuity owners to regularly check their beneficiary designations as part of any estate plan.)

These examples provide some context as to what kind of returns indexed annuity owners might expect.

There is one type of annuity account, commonly referred to as an immediate annuity where, in one instance, the insurance company can keep the undistributed funds when the owner dies.

These plans are funded solely with insurance products such as cash value life insurance or fixed annuity contracts, and the plan owner can often deduct hundreds of thousands of dollars in contributions to these plans each year.

A variable annuity with living benefits leaves you as owner of the account's assets and there may be money left over for your heirs.

These are just some of the consequences of naming as annuitant someone other than the owner of the annuity.

By naming the child as contingent owner, ownership of the annuity contract passes to his hands once you pass away, and he will be responsible for the tax payable thereafter.

Auto - Owners Insurance is comprised of five separate property and casualty companies as well as one health / annuity / life insurer.

Most of the premium dollars paid by indexed annuity policy owners are invested by the issuing company in traditional fixed income securities such as bonds and mortgage loans.

The sole purpose of an annuity is to convert a lump sum payment (or series of payments) into a stream of income that is guaranteed for set period of time (usually the life of the contract owner or another chosen person referred to as the annuitant).

An annuity contract entered into between an insurance company and an owner for the benefit of a designated group, such as retirement plan participants.

For example, if the original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain of $ 50,000 is taxed as ordinary income to the beneficiary.

Additionally, the policy owner has the right to change the mode of premium payment, i.e. annual, semi-annual, quarterly or monthly bank draft as well as the payout method, i.s. lump sum, lifetime annuity or period certain annuity.

IRS Form 712 (also referred to as «IRS 712 Special Statement») is a statement that provides annuity contract values as of the date of an owner's death.

Some of these features include access to the funds if the owner is confined to a nursing home, 10 % to 20 % free withdrawals each year for any reason, increased value as a death benefit, and higher interest earning guarantees while taking a fixed income stream that includes the ability to stop at any time and continue the annuity.

This annuity option is available to those who are up to age 90 (as of his or her last birthday) as the annuitant, and policy owners who are at least age 18 or over.

The spouse of a deceased annuity owner can take the death benefit in the same manner as any other beneficiary with the same income tax liability results.

Annuities can be paid out over the owner's lifetime or a shorter period of time such as 10 years.

As a policy owner of a life insurance, annuity, long - term care, or disability policy, it is natural to be concerned about what would happen to your benefits if your insurance company goes bankrupt.

They are usually touted as an alternative to annuities, which immediately become taxable upon the death of the owner.