Private Annuity Agreement with Payments to Last for Life of Annuitant 2025

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When the annuity owner dies, the payout typically goes to the named beneficiary. Depending on the annuity contract terms, the beneficiary can receive the remaining value of the annuity either as a lump sum or as regular payments.
A single life annuityalso known as a life only annuityprovides a guaranteed income stream for your lifetime. Your life expectancy primarily determines your payment amount. If you outlive your life expectancy, you could receive more than the annuitys total accumulated value.
What Is a Private Annuity? A private annuity is a special agreement in which an individual (annuitant) transfers property to an obligor. The obligor agrees to make payments to the annuitant ing to an agreed-upon schedule in exchange for the property transfer.
What happens to the money in an annuity after the owner dies depends on the type of annuity and its specific provisions. Some annuities stop payments when the owner dies, while others continue to pay out to a spouse or other beneficiary. The annuitant decides on the provisions at the time the contract is drawn.
Annuities typically do not go through probate when they are inherited because most annuity owners name a designated beneficiary. However, they may still be subject to probate if there is no named beneficiary, or if the beneficiary is no longer alive.
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