Using an annuity to reduce IHT ?

Bostonerimus1

RogerPensionGuy said:

I've been reading, digging and playing on the various annuity calculators and about to pick one I think. 

It will be a life annuity of 3% 4% or RPI, they all feel fairly balanced to me, so I'll pick any dependant on the tea leaves of the morning I decide. 

I'll also pick a % of VP or X years of guarantee, I'm still in deep mincing mode, hopefully the tea leaves will help here as well. 

My plan is to put children on as beneficiaries and aware they will attract income tax, but will the payments to children get caught up in the IHT net currency now or after April 2027?

I'm in the US and have an old account that is geared to providing annuity income. I could get the accumulated value out in 10 equal payments over 9 years or just turn it into an annuity. My plan is to use the annuity option entirely as longevity insurance and as I don't have any dependents I'm not getting a guarantee. Starting at age 65 a single life annuity will give me a payout rate of 9.8% and if I live to 85 that's an implied IRR of 7.5%. The payout is so good because of a "loyalty bonus" which makes it a fairly easy decision.