Annuities and Wealth Transfer – A Great Match

February 24, 2022


Annuities can play an important role in wealth transfer. They can be a bequest protected by death-benefit provisions and can even provide a lifetime income for beneficiaries through predetermined beneficiary provisions. Speak with your clients about these topics on leaving a legacy.


What is Your Legacy Goal?

The past several years have forced many people to develop some clarity about who and what is important to them. These years have also shown many how fleeting good health and life can be. Preparing for untimely occurrences and making sure that loved ones are covered in the event of passing or disability can help put a lot of folks at ease. Review life insurance and disability coverage options.

Review and Update Your Beneficiaries

New year, new life changes. Getting married, divorced, or having children or grandchildren are major changes and should prompt a beneficiary review. Ensuring that the proper beneficiaries are designated can help ease what would otherwise be an especially trying time after the death of a loved one. Review primary and contingent beneficiary designations.

What’s Your Beneficiary Benefit?

Nonqualified annuity beneficiaries are not subject to the “10-year rule” like IRA designated beneficiaries are. This means they still can take lifetime distributions.

Are you concerned about who will receive the funds and how quickly they may be depleted? Utilizing the carrier’s predetermined beneficiary election, if available, can quash those concerns. These predetermined instructions can limit the ability of chosen beneficiaries to the elected distribution option.

For someone who is in a potentially compromised financial situation, it can spread the distribution over a greater number of years than a lump sum. Review current death benefits, determine how much is currently at risk if there is a market pullback, and if it makes sense to reestablish the death benefit value at current market highs.

Charitable Bequest

Use income in respect of a decedent (IRD) assets to fund charitable bequests. Most charities will not have to pay income tax on the gain portion of the payout. Encourage clients to start the new year on a good foot. Reach out and have them review their annuity goals, and let them know that you want to make sure their financial plans accommodate their wealth-transfer plans.


Picture of Pacific Life Annuities

Pacific Life offers a broad and diversified range of products and solutions designed to help individuals and families achieve asset growth, sustainable retirement income, and long-term financial independence. We also help businesses manage and fulfill their long-term retirement plan commitments to employees.


For more information about retirement-planning, please contact our Retirement Strategies Group at or (800) 722-2333, ext. 3939.


This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Information is based on current laws, which are subject to change at any time. Clients should consult with their accounting or tax professionals for guidance regarding their specific financial situations.


This material is educational and intended for an audience with financial services knowledge.

Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.

Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. 

Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.

No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency

For financial professional use only. Not for use with the public.