Understanding Annuity Ownership Transfer

About Chad Owen

Eagle Shadow Life & Annuity
Eagle Shadow Life & Annuity specializes in retirement and asset protection. As the host of Safe Money Radio, author of the Safe Money Book, and nationwide presenter of safe money concepts, Chad Owen enjoys helping people all across the nation protect their retirement money. Chad Owen says, “Over the years we have helped people protect millions of dollars in retirement assets, and not one of those people have ever lost a penny from market downturns. There is something truly wonderful about being able to help people have peace about their financial future.” Chad can sleep at night with the comfort of knowing their client’s retirement funds are protected. They desire to give you that same peace of mind.

How to Transfer Your Annuity to Another Person or Entity

An annuity is a contract between an individual and an insurance company. The individual makes a lump-sum payment or series of payments to the insurer in exchange for guaranteed payments over a specified period. These payments may be for life, a fixed number of years, or a combination. Once an annuity is purchased, the individual becomes the contract owner, and they may make changes to the annuity as necessary. This includes transferring ownership of the annuity to another person, such as a spouse or family member.

Can I transfer ownership of my annuity?

Yes, it is possible to transfer ownership of an annuity to another person. However, the process of transferring ownership may vary depending on the type of annuity and the contract terms. Some annuities may allow for the transfer of ownership to a spouse or other family member, while others may not allow for any ownership transfers at all based on the original applications ownership designation.

Before attempting to transfer ownership of an annuity, it is essential to review the contract’s terms and understand the transfer’s potential tax implications. In many cases, transferring ownership of an annuity may result in tax consequences, so it is vital to consult with a financial advisor or tax professional before making any changes to an annuity contract.

Are there any fees or charges associated with the transfer?

Generally, there are no transfer fees. The fees associated with transferring ownership of an annuity may vary depending on the specific contract and the insurance company that issued the annuity.

Additionally, some insurance companies may require the new owner to meet specific eligibility requirements before allowing for the transfer of ownership, this may become an issue if a trust is or will be a designated owner.

What about a transfer to a spouse?

Transferring ownership of an annuity to a spouse may be a straightforward process. Many annuity contracts allow for the transfer of ownership to a spouse without any fees or charges if the new owner meets the eligibility requirements outlined in the agreement. Please consider any tax liability issues before making the change of ownership transfer.

To initiate a transfer of ownership of an annuity to a spouse, the original owner must typically complete a transfer of ownership form provided by the insurance company. This form will generally require the original owner to provide information about the new owner, including their name, address, and relationship to the original owner.

Once the form is completed and submitted to the insurance company, the new owner will typically receive a designation of ownership receipt reflecting their ownership of the annuity.

In conclusion, transferring ownership of an annuity can be a complicated process that requires careful consideration and planning. Before attempting to transfer ownership, it is essential to review the contract terms and consult with your financial advisor or tax professional to understand the potential tax implications of the transfer. While transferring ownership of an annuity may be beneficial in some cases, it is essential to understand all aspects of the change of ownership such as fees, charges, and eligibility requirements associated with the transfer.  Tax consequences should also be a prime concern.

Article Summary

  • It is possible to transfer ownership of an annuity to another person.
  • Transferring ownership of an annuity may result in tax consequences, transfer fees, or other charges.
  • In some cases (transferring to a spouse), an annuity transfer of ownership can be done relatively easily (minimal or no fees or charges).

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About Chad Owen

Eagle Shadow Life & Annuity specializes in retirement and asset protection. As the host of Safe Money Radio, author of the Safe Money Book, and nationwide presenter of safe money concepts, Chad Owen enjoys helping people all across the nation protect their retirement money. Chad Owen says, “Over the years we have helped people protect millions of dollars in retirement assets, and not one of those people have ever lost a penny from market downturns. There is something truly wonderful about being able to help people have peace about their financial future.” Chad can sleep at night with the comfort of knowing their client’s retirement funds are protected. They desire to give you that same peace of mind.

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Annuities are a safe and reliable investment. They can transform your savings into a more predictable income. Speak with one of our qualified financial professionals today to find out how an annuity can offer you guaranteed monthly income for life.

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Content in our posted articles is deemed to be accurate but topics, facts and laws can change. It is always a good idea to verify facts before making decisions. Always seek authorized and professional advice regarding financial decisions which includes investing, annuity purchases, tax planning, changes in a financial portfolio and retirement planning.

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