Guaranteed Annuity question.

Undervalued

Sorry if this is very basic or I am using the wrong terms.....

If I take a lifetime annuity but with a guaranteed minimum payment period of, say, ten years do I have to nominate a specific person to benefit if I die during that ten year period? Or can the remaining amount just form part of my estate to be distributed in the same way as the rest under the terms of my will? 

Also, what would be the tax position? I would be paying tax on all of the pension during my lifetime and my estate would attract inheritance tax.

Marcon

Undervalued said:

Sorry if this is very basic or I am using the wrong terms.....

If I take a lifetime annuity but with a guaranteed minimum payment period of, say, ten years do I have to nominate a specific person to benefit if I die during that ten year period? Or can the remaining amount just form part of my estate to be distributed in the same way as the rest under the terms of my will? 

Also, what would be the tax position? I would be paying tax on all of the pension during my lifetime and my estate would attract inheritance tax.

This should make helpful reading: https://www.aviva.co.uk/retirement/pension-annuity/knowledge-centre/annuity-value-protection/


as should https://www.scottishwidows.co.uk/retirement/retirement-options/your-pension-options/guaranteed-income.html

Undervalued

Thanks, perhaps it depends on the company then?

At a quick read the first link suggests it has to be a specific person but the second suggests it could also be the estate?

I will read in more detail later.

DRS1

Value protection and Guaranteed Period are two different things.  One is a lump sum which would go to a spouse or other nominee whereas the other is just a continuation of your pension payments for a period of time which would probably go to your estate.

DRS1

A quick read of a booklet from Aviva suggests that you can have a joint annuity with a guarantee period and in that case the pension paid after the annuitants death during the guarantee period would go to the dependant.  You can also choose whether the dependant's pension starts when the annuitant dies or only when the guarantee period expires.  Obviously one costs more than the other.