Holders of annuity dies: remainder leftover to spouses but spouse's died ...where does it go?

[JanuaryBluehoo]

Any idea? Would it to to annuity holder beneficiary or spouse beneficiary's?

I think the point of an annuity is that it stops when you die

I thought this too!

Depends on the terms of the annuity but I wouldn't generally expect it to pass on to the beneficiary of the spouse, but cease on spouse's death. Is the spouse's beneficiary a minor or adult who is not independent?

No it could go to spouse or have a set period on it. One of these applies.

If it's spouse but spouse dies where does it go

Spouse pre dedecased annuity holder.

Unfortunately it isn't going to go to you I'm afraid.

Annuity will end now.

Annuity options are chosen at the time of taking out the annuity, eg x amount with a 50% spouse annuity upon death or y amount with no spouse annuity. The annuity ceases once both parties (if selected) die. Nobody else inherits annuity benefits.

Depends on terms but I imagine similar to a lot of pensions where passes to existing spouse but if they’ve died, the annuity ends at the point.

The annuity holder either has a set period for it or its going to spouse who pre deceased annuity holder.

If it's a set period then there could be residue which I assume goes to annuity beneficiaries.
However if it goes to spouse, that's not clear. Spouse is dead so is that it or does it pass to annuity holder beneficiary or spouse beneficiary's.

Or that avenue could end with the spouses.

Actually this explains it better than I did

It depends on the precise terms but normally it would now end unless there are dependent children in which case they may benefit until a certain age such as 18 or 21.

No dependent children.
This was from a few year's ago and a letter appears to do a claim form..
I'm sure at the time I was told that was it? So why years later a claims form?

Ok some annuities, usually a pension, do have spouse survivor clauses such that if you die, your surviving spouse gets some % of the annuity until they die. Usually you either pay extra for this or the annuity monthly payment is a bit lower than if you had no surviving spouse clause.

But beyond that, in my experience, annuities cannot be inherited. I have never ever seen an annuity that can be inherited like a normal family asset.

Now a pension or investment fund…one that hasn’t been converted into an annuity is a different matter.

As everyone else has said there will generally be specific provision for spouse if required but spouse only. It then dies and doesn’t get passed on elsewhere if spouse is no longer around.

Thanks.

I'm sure this is an annuity and nothing else.
Very strange!
Maybe they don't realise spouse died?

But I would have told them this year's ago.
Clerical error perhaps.

Do you mean that there was a guarantee period on the annuity? For example that at least 10 years worth of annuity payments will be made and the original annuity holder has died within that period?

If that’s the case, then the remaining sum (e.g. 10 years worth of payments less what’s already been paid out) will be paid out to someone - probably the nearest next of kin to the original annuity holder but the annuity company may have different rules for who receives it.

It's a pension plan annuity.

Cheseie yes.
There is a chance it had guarantee period on it.

Some annuities have a guaranteed minimum payment period (either instead of or as well as a spousal payment)- when you purchase the annuity it's agreed that it will pay out for a minimum of X years and, if the person (and spouse if appropriate) die before that, it will pay to a nominated third party.

No, annuities are generally for life…not a set period as in # of years.
If the annuity holder dies younger than expected, the residue is kept by the company that offered the annuity.
If the annuity holder dies older than expected, the annuity company loses money as they still have to pay the annuity until death.

That’s why having the surviving spouse clause either costs more or results in a lower monthly annuity payment- because they’re covering the remaining life span of two people.

If the annuity holder dies, the spouse isn’t getting a “residue” they get the % of annuity contracted for by the annuity holder. Once you take out an annuity there can be no residue. It’s not at all like a draw down of pension funds.

This would be only way that anyone other than the spouse could inherit from a pension annuity.

Ok so looks like spouse could inherit however it's unlikely on spouse death that goes further to their beneficiary but.... there is also a chance that it's guaranteed where it could last for a while...in which case it could be annuity holder beneficiary or

Nothing
.

So they either don't realise the spouse died, or it was for a guarantee period and we may get that residue left over.

Surely read what the annuity contract says?