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What Is a Annuitant? Definition, Uses and Importance.

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In probate law, an annuitant is entitled to regular monetary benefits of a pension or annuity investment. The annuitant is the owner of the annuity contract. It may also be the surviving child, spouse, friend, or any other person the annuity owner deems fit to be a beneficiary.

The size of payments often depends on the number of years the annuitant is expected to live or the amount of money the annuity owner invested while he or she was alive.

If the annuitant of the investment isn’t the annuity contract owner, they will not be allowed to make significant decisions regarding the contract.

Why is an annuitant important?

An annuitant is important because:

  • It allows the annuity contract owner or beneficiary to reap a tangible sum of money from their long-term investment.   
  • While saving with an annuity contract the beneficiary does not have to pay accumulated taxes.

How is an annuitant structured

It starts when a person decides to invest a huge sum of money in an annuity investment. The annuity owner then goes ahead to fill in a beneficiary in their contract. Learn more about probate and annuity to see your rights and obligations.

The beneficiary of the annuity investment can either be a spouse or friend of the contract owner. 

An annuitant isn’t the same thing as an annuity. An annuity is the guaranteed payment or income that comes as a result of a long-term investment. Whereas an annuitant is the one who is entitled to whatever income that comes from an annuity investment. 

The timeline for receiving an annuity mainly depends on the contract’s specifications. 

What is the lifespan Of an annuitant? 

The number of years an annuitant is meant to receive their annuity income depends on the number of years specified in the contract. Is probate necessary if you must receive your annuity as stipulated by the deceased? Find out here.

How is an annuitant used?

Every annuity contract must have a beneficiary – someone who will be available to take up the income or proceeds from the investment.

The annuity contract owner has the responsibility of choosing themselves or any other person they wish as the annuitant.

History of an annuitant

The ideas of an individual or family members didn’t just start today. It started during the 18th century in America. A Pennsylvania company in 1759 was established to profit presbyterian church ministers and their family members. The more the ministers continue to contribute money, the higher their chances of earning for a lifetime. 

Synonyms for {Probate Term}:

The following are different terms you can also use for “annuitant” 

  • Receiver
  • Recipient
  • Annuity beneficiary

Frequently Asked Questions About Annuitant

Below are answers to common questions you may have about annuity and annuitant.

Q: What rights does an annuitant have?

A: as stated earlier the main purpose of having an annuitant is to see an individual who will benefit from an annuity investment. 

The annuitant has to request their payment once it’s due. If the annuity owner is dead, the beneficiary is not the owner of the annuity contract, they can decide to contact the attorney who is in charge of the investment.

Q: Is an annuitant the same as a beneficiary?

A: Yes, an annuitant can also be referred to as a beneficiary. The contract can not keep being their beneficiary if death occurs. So, the annuitant will be available to receive the income upon their death.

Q: Can an annuitant be changed?

A: Yes, he or she can be changed. An annuitant is to annuity what “the insured” is to a life insurance policy. 

Most annuity contracts will allow the owner of a contract to change their annuitant or beneficiary any time they wish.

Q:Does an annuitant have to be a natural person?

A: An annuitant needs to be a natural person. It can also be two individuals if the contract is running on a joint annuitant.

If the annuitant were to be a corporation or any other non-natural body, it will be difficult to measure the lifespan and benefits of the annuity contract.

Q: What happens if the annuitant is not a contract owner and dies before the contract owner?

A: annuity payouts will go on. in a case where the annuity contract owner dies before their contract cancels, the payments are bound to stop coming in.

However, if the deceased filled in an annuitant during their lifetime, the person starts to receive the income.

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