Tax Facts

582 / Does the purchase of a joint and survivor annuity result in a taxable gift?

Updated: October 02, 2024 at 01:53 PM
Yes, if the purchaser of the contract does not reserve the right to change the beneficiary of the survivor payments.1



Planning Point: In the case of a joint and survivor annuity between spouses, the unlimited marital deduction makes this a moot point (see Q 584); in the case of a non-spouse joint annuitant, though, gift tax consequences may be incurred.



On how to value the gift, see Q 585.





1.     IRC § 2523(f)(6).


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