If annuity payments have not begun, and the designated beneficiary is the owner's spouse, the above distribution requirements do not apply. Instead, the spouse can become the new owner, and tax deferral can continue during his or her lifetime.

If the owner dies after annuity distributions have begun, the beneficiary(ies) will receive the remaining monthly payments.

• The monthly amount of an annuity certain depends upon the payment period and the amount of money in the accrued account.

In either event, the value of the annuity will be included in the original owner's estate for estate tax purposes, but will avoid probate, if paid to a named beneficiary.

Circumstances Change

Keeping beneficiary designations up to date can help ensure that these assets will also be distributed according to the owner's wishes.

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