Annuities, Your Assets and Protecting Your Inheritance

As the baby boomer trend continues to grow in our nation, trillions of dollars and assets will transfer to their heirs which will need a safe haven to invest in.

At Got Annuities LLC, we encourage you to consider annuities for these important reasons:

1. All fixed and equity-indexed annuities have guaranteed returns and variable annuities now have riders which will guarantee the return of your principal even if the market declines. The guaranteed minimum returns may vary depending on the state you acquire the annuity in or by the product design and the variable annuities also have features which can reset the growth of your principal in five year intervals. Call us at 1-888-535-4131 or contact us to inquire about these features.
   
   
2. Many states provide either complete or partial statutory protection to annuities and cash values in life insurance from the claims of creditors. Several states, like New York, Florida, and Texas provide near absolute protection from creditors for owners of annuities. Annuities, being insurance products, are almost always non-probate property. Annuities pass at an owner's death directly to a named beneficiary and not to the annuity owners' estate.
   
   

Note: If an insurance company becomes insolvent, all state have Insurance Guaranty Funds for residents who buy most kinds of insurance sold in the state. When an authorized insurance company becomes insolvent and is liquidated by a court order, the guaranty funds will pay covered claims. Fixed and equity-indexed annuities purchased through insurers that are licensed to do business in each state are types of insurance plans which are covered. For more information, you should contact your State Department of Insurance.

1. Have You Considered Who Should Inherit Your Assets?
   If you are married, before you can decide who should inherit your assets, you will want to consider marital rights. States have different laws designed to protect surviving spouses. If you pass away without a will or living trust, state law dictates how much passes to your spouse. Even if you have a secured a will or living trust, if you provide less for your spouse than state law deems appropriate, the law will allow the survivor to receive the greater amount.
   
   After considering your spouse's rights, ask yourself these questions:
   1. Should my children share equally in my estate?
   2. Do I wish to include grandchildren or others as beneficiaries?
   3. Would I like to leave any assets to charity?
      
      
2. Which Assets Should They Inherit?
   When transferring assets you may want to consider these questions depending on your situation:
   1. If you own a business, should the stock pass only to your children who are active in the business or should you compensate others with assets of comparable value?
   2. If you own rental properties, should all beneficiaries inherit them? Do they all have the ability to manage property? What are each beneficiary's cash needs?
      
      
3. When and How Should They Inherit the Assets?
   To determine when and how your beneficiaries should inherit your assets, you need to focus on a few factors: The potential age and maturity of the beneficiaries: The size of your estate verus your and your spouse's need for income during your lifetimes: The tax implications for your situation.

CONSIDER TRUSTS WHEN PLANNING INHERITANCE

Outright bequests offer simplicity, flexibility, and some tax advantages, but you have no control over what the recipient does with the assets once they are transferred. Trusts can be useful if you feel the beneficiaries are young or immature, if your estate is large, or for tax planning reasons. Trusts can provide the professional asset management capabilities an individual beneficiary lacks. Call us at 1-888-535-4131 or contact us if you have questions.