Owners can choose one or multiple beneficiaries and specify the percentage or fixed amount each will receive. Beneficiaries can be people or organizations, such as charities, but different rules apply for each (see below). Owners can change beneficiaries at any point during the contract period.

At what point does the beneficiary to an annuity acquire rights?

The beneficiary to an annuity acquires rights upon the death of the owner. In most cases, the beneficiary will receive a lump sum cash refund of the contract, although, with certain annuity contracts, the beneficiary can take over the policy as the owner for the remainder of the term.

Who is a qualified beneficiary of a deceased Rif annuitant?

A “qualified beneficiary” includes the deceased RIF annuitant’s Partner as well as a financially dependent child or grandchild. What constitutes “financial dependency”? If the income of a child/grandchild exceeds a specified amount, the presumption is that he/she is not financially dependent on the deceased.

What is the exclusion for NYS pension beneficiary?

a NYS, local government, or federal pension, the beneficiary is entitled to up to a $20,000 exclusion if the decedent would have been entitled to it had the decedent continued to live, and it was not claimed on the decedent’s final return.

Can a beneficiary defer paying taxes on an annuity?

the beneficiary can defer paying tax on the sum received by transferring it to their own registered retirement plan, such as an RSP or RIF, or transfer it to an eligible annuity. Such transfer or purchase must be completed in the year the designated benefit is received or within 60 days after the end of the year.

Is the government deferred compensation plan an annuity?

A:No. Government deferred compensation plans are characterized as pension or annuity payments. Since these plans are not funded by the employer, they wouldn’t qualify for full exclusion but would qualify for the $20,000 pension and annuity income exclusion under Tax Law section 612(c)(3-a). CO-60 (11/18) (page 2 of 4)