You have worked hard to build your retirement savings and as a result, may have additional assets you want to leave for your loved ones. Most people are familiar with how annuities can add income to fill their specific needs. However, setting up guaranteed payments for heirs and beneficiaries is becoming more popular with those who want to control how their legacy is distributed. Just like with any other annuity, a legacy annuity is principal protected and guaranteed. Typically, a cost of living adjustment is added to the contract so the payments increase annually for the life of the policy (protecting against inflation).
Legacy Annuity Features:
- A lifetime income stream for both you and your beneficiary
- Spread out tax liability over time
- Avoid estate or probate issues
- Prevent your beneficiaries from buying a Ferrari or blowing it all in Vegas