Can You Buy An Annuity For Someone Else?

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states of Puerto Rico, founder of

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CGO. Contractual guarantees only. You

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own an annuity for what it will do, not

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what it might do. Today's topic is an

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interesting one. Can you buy an annuity

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for someone else?

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Can you buy an annuity with I guess your

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money for someone else? We're going to

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answer that after this.

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So, can you buy an annuity for someone

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else like nieces, you know, somebody you

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really like, a friend,

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etc.? Yeah, you can. I you you can do

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that. Um I had a situation recently

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where um a gentleman's sister passed

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away and the sister's um wishes in her

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trust was for her two daughters to get

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immediate annuities purchased for them.

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and he was the executive. He the brother

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was the executive of the estate. So

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that's what happened. She wanted to buy

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the annuities

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and we bought them with the estate money

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for the daughters. Now let's look at it

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a little bit more simple. If you said,

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"Okay, Stan, I want to buy an annuity

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for my grandson."

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I could be that could be me. I'm a

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grandfather. You're saying, "Stan, I

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just know what." Yeah, I am. Okay. I buy

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the annuity for the grandson. Okay.

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Meaning, and most of the time that

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people are buying annuities for other

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people, it's for lifetime income. So,

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let's just say I'm going to buy a

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lifetime income stream for my grandson

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and have it pay for 80 years. Okay, I

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can do that. But the owner of the policy

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pays the taxes on the income. Are we

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clear? The owner of the policy pays the

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taxes on the income. So the income would

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be based on the grandson, niece, nephew,

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whatever, daughter, son. But if you fund

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it and you own the policy, you're the

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owner, you you are you have to pay the

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income taxes on that money coming out.

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Now, what I would tell you to do is meet

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with your estate planning lawyer and

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say, "This is what I'm thinking."

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And then get them to sign off on it. get

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your CPA to sign off because nobody but

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those two people, tax lawyers, CPAs, can

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give tax advice. Here's what I did for

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my family. I have two daughters, 30 and

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28 at the time of this taping. I do not

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want them to get large lump sums when I

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die because they would show up at my

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funeral in a Ferrari as the helicopter

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brought them in to get in the Ferrari

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and they would have paid cash for both.

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I want to make them payments. I want to

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lovingly handcuff them. So if you want

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to lovingly handcuff your beneficiaries,

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you can set up your trust so that when

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you pass away, an immediate annuity is

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purchased for whoever at that time for

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lifetime income. I was talking to a guy

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the other day goes, "Should I buy this

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annuity now for them and and and try to

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guess on when to start the income?" No,

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player. Now, everybody but me is going

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to say yes because they want the

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commission. But that's not the that's

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not the right answer. That's not the

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truth. So I asked him, I said, "As long

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as you're alive and hitting on all

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cylinders or at least 80% of your

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cylinders, everything's good, right?" Oh

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yeah. You know, as long as I'm here,

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it's good. He goes, "When things are

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going to spiral a little bit is when I

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pass away." That's not egotistical, but

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for a lot of you a personalities out

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there, that's the way it is. And I don't

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want any type of argument. I don't want

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any type of negotiation when I pass

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away. When I pass away, those immediate

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annuities will be purchased for my

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daughters, and they will cuss me out

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every single month when that income

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payment hits their account, and I'm a

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I'm good with that. Just understand

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there's some taxation issues that you

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really need to get your CPA and your tax

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lawyer involved. Loop me in. Put me on

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the call. I've done this million

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millions of times, thousands of times.

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But the point is, you don't take tax

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advice from agents and adviserss. You

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take tax advice from CPAs and tax

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lawyers and estate planning lawyers. But

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can you buy an annuity for someone?

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Yeah, you sure can. Now, there might be

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some of you that go, "You know what,

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Stan? That trust thing sounds great, but

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I don't have a trust. How do I do it

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without a trust?" Well, you can buy

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what's called a deferred income annuity

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and choose a start date. had a gentleman

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the other day didn't have a trust didn't

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have a ton of money but from I told him

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I said you might not think you have a

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ton of money but you're in the top 5% of

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the world you know all of you that don't

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think you're rich you are rich compared

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to most people you know 60% of senior

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citizens have $10,000 to their name 54%

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of the public doesn't even have a bank

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account how about that so when the whole

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co thing problem with the co thing there

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was a lot of fraud duh but a lot of

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people couldn't get the money because

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they didn't have bank accounts to have

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the money wired into

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I mean

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it's hard to believe but anyway this G

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this gentleman you know what he did is

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he said you know his I think his um the

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kids were in their 20s and so he bought

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DAS deferred income annuities which in

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essence are immediate annuities that you

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can defer no no no moving parts no

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market attachments no annual fees etc

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okay he bought them and he had 40year

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deferral time periods so they're they

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were starting at their age 60 and it was

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a big number because you know it's based

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on life expectancy. That's how he did

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it. He didn't want to do the trust

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thing. He wanted to do the deferred

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income annuity thing. There's some

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drawbacks and limitations with that.

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But, you know, if you want to go through

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that, we can just email

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stantheanuityman.com or schedule a call

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and and demand to get me for those type

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of situations. But yes, you can buy an

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annuity for someone else. The other

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thing I would encourage you to do is is

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check out the gifting laws out there.

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Okay? And also check out your the

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exemptions for your estate, what you can

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give money, how you can give money away

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in large amounts.

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And the reason that I bring that up is I

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grew up in the south where nobody did

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that. Nobody ever helped the kids when

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they really needed the help as young

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adults. You had to wait till, you know,

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grandpa and grandma died to get any

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money. And by that time, you didn't need

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the money. And I understand a lot of you

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out there going, "Well, that's just the

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way we raise our kids, son. pull them up

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by the bootstraps, make them work it,

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work hard. I tell someone other day, I

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don't want any bootstraps in my family.

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If I see a bootstrap in my family, I'm

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going to throw it away. I want to be the

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one that had to do that. I don't want my

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kids and grandkids to be the one that

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have to do that. I know you're saying

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that, Stan, you're bad father and

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grandfather. Duh.

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Yeah, maybe. But I don't want that.

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Okay. So, you might consider gifting

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that now, funding that now while they

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need it. I don't need anything. My mom's

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still alive. She's 87. St. Augustine,

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Florida. I don't need anything

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from her estate. Nothing from her

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estate. But boy, I needed it 30 years

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ago. I did. And I'm sure you can say the

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same thing. Think like that. Let's get

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out of the norm of thinking about

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inheritance, giving money away, etc. If

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you've ever given money away, it's a

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good feeling. If you ever bought someone

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a lifetime income stream annuity, it's

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an unbelievable feeling. This gentleman

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I was referring to that was the brother

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of the sister who passed that had the

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two daughters and he he uh oversaw the

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the um purchase of their immediate

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annuities. And they were, it was a big

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sum of money for each of them, but

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they're going to get a lifetime income

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stream for the rest of their lives. I

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think they were in their 50s. I [snorts]

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was talking to him and I said, "You know

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what? That was a good thing that you

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did. That was a good thing your sister

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did. That was a good thing your sister

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did to make sure that you did what she

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wanted to get done. You provided a

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lifetime income stream for those two

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those two young ladies that they're

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never going to outlive because he was

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questioning, you know, should I put it

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in the S&P for them? Should I put in

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something more liquid than them? No, no,

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no. You lovingly handcuffed them and you

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lovingly give them a lifetime income

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stream. And I convinced him and his

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lovely wife who were fantastic. I said,

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"You did good. You did good. You can

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sleep at night knowing that they have a

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lifetime income stream." Because, you

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know, going to another topic, social

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security for the kids from my daughters

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30 and 28 at the time of this taping.

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Who knows what's going to happen? We all

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know that they're going to means test

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it. We all know that they're going to

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point at people like me and you and say,

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"Regardless of what you think, you're

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the evil rich. You're the evil rich and

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you don't get to get as much of that

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social security." That's fine with me.

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If if there was no fraud and everything

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was fair,

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but for those of us out there that

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consider ourselves 30year overnight

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sensations,

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you know what I'm saying now? didn't

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happen overnight. We grinded. We

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scrimped. We saved. We threaded the need

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needle. We did without. We did the best

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we could. We reached this time in our

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lives. We've won the game. Right. God

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told me the other day, I love when you

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say you won the game. Why are you still

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playing? We won the game.

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Let's help

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others win that game a little bit

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earlier. And you can do that by buying

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them an annuity. I hope that you go to

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my site, theanuityman.com. You can

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download books. You can email me

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stantheanuityman.com.

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You can schedule a call as well. One

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last thing, there's a video above me

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that I did. I want you to watch. It's

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called how to use annuity calculators.

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And and um it's just cool. You know, how

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to how to run illustrations, how to

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properly do all that. Okay, I'm going to

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be a little bit of a homer here and give

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the plot away. My site's the best site

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because you can run quotes anonymously.

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No name, no phone number, no email

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needed. Just your gender, state of

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residence, and date of birth. That's it.

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I mean, you like, "Well, I'm giving my

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date of birth." Okay, great. There's no

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name. There's just a gender. That's not

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data. Okay? We don't keep any of that.

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There's nothing to keep. But you get

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365. Hello, game changer. We don't play

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accounts or do anything like that. Just

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get the quotes, okay? Watch that video.

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Get in touch with me. And I'll see you

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next time. My name is Stan the annuity