Annuities

[ELNbluemax2]

What is the name of your state? W
hat is the name of your state? Ohio

My daughter is beneficiary of my Annuities. When I die, the deferred interest will become taxable. Does my Estate pay the taxes at my rate or does the beneficiary pay the tax at her rate??
Thanks

 

[loku]

Following is the rule for inclusion of the value of an annuity in the estate of a deceased person. If the rules do not apply, then the value of the annuity is taxed to the beneficiary.


The value of an annuity or other payment is included in the gross estate of a decedent to the extent the payment is attributable to amounts paid by the decedent under the following circumstances:
• The payments are receivable by a beneficiary by reason of surviving the decedent;
• The payments are made under a contract or agreement;
• The decedent had the right to receive the payments during his lifetime; and
• Contract payments are determined based on the decedent's life or life expectancy. (IRC section 2039(a))
The value of an annuity or other payments included in the decedent's gross estate is the portion of its value attributable to the portion of the purchase price contributed by the decedent. Contributions made by the decedent's employer or former employer are deemed to be made by the decedent. (IRC section 2039(b))