Changing the Annuitant
Some annuity contracts specifically give the owner the right to change the annuitant and some do not. If the owner of the contract is not a natural person, a change of annuitant is treated the same as the death of an owner for income tax purposes, which means that certain distributions are required to be made from the contract. Therefore, even if the contract specifically allows the owner to change the annuitant, care should be taken in naming the annuitant when the owner is a non-natural person in order to avoid the possibility that unfavorable tax consequences may be incurred if a change of annuitant is later desired.
Last Updated: 9/23/2012 10:05:00 PM