What to Do When You Inherit a Nonqualified Commercial Annuity

HNWEstate Planning

man with laptop• As a beneficiary of a nonqualified annuity, you have options to choose from when an annuity is passed on to you.

Clients who are settling estates and have inherited a nonqualified annuity are interested in a more tax-efficient option for those assets compliments of the IRS.

This option is called a nonqualified stretch annuity. Rather than taking the annuity death benefit proceeds as a lump sum and paying taxes all at once, this new “stretch” option allows the beneficiary of a nonqualified annuity to take annual distributions over time, thereby spreading any taxable gains over their lifetime. It gives them the flexibility to reinvest the money and continue to enjoy the benefits of tax deferral.

If you are looking for additional details on this topic or if you require advice about your situation, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Estate Planning Attorney

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