The death of a loved one who sought to pass down an annuity poses a time-sensitive decision on the beneficiary, with massive tax implications.

The potential tax liability to clients may climb as high as hundreds of thousands of dollars if they elect for a lump-sum distribution when inheriting a non-qualified deferred annuity, according to Laird Johnson, the senior director of advanced markets for AXA Distributors.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access