Wednesday, February 02, 2011
Will I Be Taxed On My Annuities When I Die?
This question is not uncommon. First and foremost, you must understand that there are several taxes that must be taken into consideration. Your annuity value will be included in your estate value at the time of death. So in the case of estate taxes, if you are over the exclusion amount, they can create a tax burden.
More importantly however, is what happens to the inheritor of your annuities. Your heirs are taxed on the gains in your annuity value. Here is a great explanation of this from about.com.