Inherited Annuities and Taxes

0:00
Hi there, Stan the Annuity Man,

0:01
America's annuity agent, licensed in all

0:03
50 states. Glad you joined me. Today's

0:05
topic is a heady one, inherited

0:10
annuities and taxes.

0:12
So, we're going to talk about that in a

0:14
broad sense because things change

0:17
rapidly in the taxation world out here.

0:21
Um, but we certainly can help you with

0:23
inherited annuities. Been doing that for

0:25
decades. So know what I'm talking about

0:27
and we'll talk about that after this.

0:36
So inherited annuities kind of a a

0:40
loaded topic. So when you combine that

0:43
with inherited annuities and taxes,

0:45
that's a really loaded topic. Now let's

0:48
talk about the tax part first because

0:50
I'm going to easily solve this one.

0:52
Anybody that is giving tax advice that's

0:55
either and they're not a CPA or a tax

0:58
lawyer or a CFP that has that

1:01
certification in that area. If they're

1:03
not certified to give tax advice, don't

1:06
listen to anything, okay? And that's

1:08
including why and I've and I know it

1:10
backwards and forwards. It's just not

1:12
legal for me to do that. I cannot give

1:15
tax advice. I can give you broad scopes

1:17
of it, which I'm getting ready to do

1:19
with inherited um money. But remember,

1:21
annuities can be held in all different

1:24
account types. Nonirra, non-qualified,

1:26
checking account, that's one category.

1:29
Uh, traditional IRA, you know,

1:32
qualified. And then Roth IRA. Okay.

1:34
Currently, Roth IRA, it's taxree unless

1:37
the rules change. So, I mean, that's

1:38
it's everything over there is tax-free

1:40
at this point in time because you've

1:42
been very very very very very very

1:46
patriotic

1:48
and you've paid your upfront taxes to

1:51
convert into

1:54
a Wroth. Hopefully, you ran the math

1:56
before you did that and didn't just go,

1:58
"Well, shoot. I'm going to get taxfree

2:00
income." Yeah, Chester, but you're going

2:01
to pay a crapload in upfront taxes to

2:03
get there. with the hope and the prayer

2:06
that the politicians don't change the

2:08
rules. But for now, Roth IRA, you

2:11
inherit the annuity, you know, nothing's

2:13
taxed, right? Great. All right. So,

2:15
let's go to the IRA nonirra

2:19
section of that. And you can inherit

2:23
um fixed annuity. You can inher Well,

2:25
let's let's go back.

2:28
You can inherit

2:30
all annuities. I was just going to say,

2:32
well, immediate annuities, you you can

2:34
inherit that if there's a what I call a

2:38
backs stop attached to it. In other

2:40
words, let's just say Aunt Irma bought a

2:43
life with a 20-year period certain and

2:45
left you as the beneficiary and she died

2:48
at year 13 of the policy. So, it was

2:52
life in 20. You get seven more years of

2:54
payments. Okay? So, you can get you can

2:57
get that from a a spouse. O give you an

3:00
example on this. We had one the other

3:02
day. Multi-year guarantee annuity CD

3:04
type annuity. Um Ernie making this up.

3:07
Ernie and E and Ernie was the uh owner.

3:11
Ethel was the beneficiary. Ethel was the

3:14
spouse with that specific annuity. She

3:16
had the ability to continue the policy.

3:19
He died year two of a five-year

3:21
guaranteed migraate. She had the the uh

3:25
the choice to either take the lump sum.

3:28
Okay, she could do that or she could

3:31
continue the policy as the spouse.

3:33
Non-spousal beneficiaries typically have

3:35
a 10-year rule to liquidate um the

3:39
policy and some uh annuities,

3:42
non-qualified older annuities have like

3:44
a five-year rule. The reason I'm being a

3:47
little bit vague on this is because it

3:49
really comes down to what you have, what

3:51
you own, and what you would what what

3:53
was owned and what you inherited. I

3:55
would encourage you to go to my site at

3:57
theanuityman.com,

3:59
schedule a call with me, or you can

4:00
email me stantheanuityman.com

4:03
and I'll take your situation on a

4:05
case-byase basis. If you want to get

4:07
ahead of it, you can you can send me the

4:09
annuity that you inherited. And there

4:13
are some annuities that you can in

4:15
essence stretch and create a lifetime

4:17
income stream using the money as well.

4:20
But every situation is so detailed and

4:24
um it's just hard to break it down in a

4:27
video like this. I'm glad it came up.

4:29
I'm glad the the um the topic came up

4:32
for my consultants and my handlers to

4:34
for me to to address it because it's

4:37
opportunity for me to speak with you

4:38
oneonone, not to sell you. Come on now.

4:40
Give me give me some credit. um and find

4:43
out what you have and then work directly

4:45
with the carrier on the the how old the

4:48
policy is, what's in the policy, you

4:50
know, what what's built in. Is there a

4:52
death benefit writer attached to say an

4:54
old variable annuity, etc. We can look

4:57
at all of that, inform you of your

5:00
choices so you can make a good decision.

5:04
So, inherited annuities, that's

5:06
happening. I'm telling I mean the baby

5:08
boomers are going to leave a ton of

5:12
annuitities

5:14
to people to inherit.

5:17
And you just have to look at it from a

5:19
standpoint of taxation. You know, you

5:21
can always if you're inheriting an

5:23
annuity that's a deferred annuity,

5:26
variable annuity, RIA index annuity,

5:28
MIGA, etc. that has, you know, an

5:31
accumulation value, you can always take

5:33
the lump sum and depending on what

5:36
account type it is, that's going to be

5:38
determine the taxation. But there are

5:41
rules that are always changing, okay,

5:44
that um we keep up with and we work in

5:47
conjunction with some very good CPAs and

5:49
tax lawyers out there so that we are

5:52
dotting every eye and crossing every

5:54
tea. But if you're in the situation that

5:56
you have inherited an annuity, you don't

5:59
know what to do. Don't just fall for the

6:01
local guy saying, "Well, yeah, let's

6:03
take this and flip it into an index

6:04
annuity and get an upfront bonus." Be

6:06
careful. You got to do it the right way.

6:08
You got to understand the tax law. You

6:10
got to understand all your choices and

6:11
you got to make your decision, informed

6:14
decision on your terms and on your time

6:17
frame. Hopefully, you choose us for that

6:19
and you choose me personally to handle

6:21
those. right now. You know, I have a

6:23
huge team at my headquarters in Las

6:24
Vegas, but you know, I do these types of

6:27
cases because I want to make sure they

6:29
get done correctly. You know, I always

6:31
tell people, hey, I've been doing this a

6:32
long, long time. Don't need the money

6:34
anymore. Fortunately, been blessed with

6:36
that. I do this to try to clean the

6:38
industry up. I enjoy it. I enjoy talking

6:40
to you and making sure you're doing the

6:42
right thing. Um, so go to my site,

6:44
theanuityman.com. You can schedule a

6:45
call with me. You can email direct.

6:47
stantheanuityman.com.

6:48
One last thing above my head. Um, and

6:51
this is interesting. Um, you know, with

6:54
this topic, why people still hate

6:56
annuities. I doubt if they're going to

6:57
hate them as much when they start

6:59
inherit inheriting them by the by the

7:03
hundreds and hundreds of millions over

7:04
the next few years. It's going to be

7:06
interesting to see the public how they

7:08
respond to that. Hopefully, we're

7:10
involved with all of those. Um, but

7:13
that's a cool video to watch. My name is

7:15
Stan the Annuity Man. See you next time.