Insights Maximizing the Power of Old Annuities Through Private Placement

Highlights

• High-net-worth individuals may own several annuities that they’ve purchased at various times during their lives.
• These retail annuities often come with high fees, unnecessary riders, opaque investment options, and adverse tax consequences.
• For such individuals, a private placement variable annuity (PPVA) may offer an attractive solution, including lower fees, streamlined management, and deferred income tax recognition.
• PPVAs may be especially attractive for those planning gifts to charities or leaving assets to beneficiaries through a trust-held annuity.