The owner of an annuity contract has complete control over the contract and all decisions related to it. In most cases, the owner is also the annuitant and the person who receives income payments, but these roles can be separated for certain planning purposes.
Owner rights typically include:
- Making additional premium payments
- Requesting withdrawals or surrendering the contract
- Naming and changing beneficiaries
- Selecting payout options
- Transferring or assigning ownership
- Exercising any contract riders or provisions
Tax responsibilities:
- The owner is responsible for reporting all taxable distributions
- If the owner dies before the annuitant, the contract may have different tax treatment
- Ownership changes can trigger immediate taxation in some cases
Common ownership structures:
- Individual ownership: One person owns the contract
- Joint ownership: Two people (usually spouses) own the contract together
- Trust ownership: A trust owns the contract for estate planning purposes
- Corporate ownership: Used in certain business planning situations
For Florida residents, proper ownership structuring can provide asset protection benefits under state law, though these protections have limitations and should be discussed with a qualified attorney.
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