Who receives the remaining benefits of an annuity upon the owner's death?

The designated annuity beneficiary receives the remaining benefits of an annuity upon the owner's death. When an individual purchases an annuity, they typically name a beneficiary who will receive any remaining funds or benefits in the event of the owner's passing. This named beneficiary takes precedence over other potential recipients, ensuring that the intended recipient receives the benefits as specified in the contract.

When an annuity owner dies, if they have designated a beneficiary, the benefits will be distributed directly to that person, bypassing the probate process, which can be lengthy and complicated. Additionally, this arrangement preserves the owner's intentions and provides immediate financial support to the beneficiary, which is often an important consideration in estate planning.

If no beneficiary is designated, the annuity can revert to the owner's estate, but that is not the preferred outcome for most individuals as it may lead to delays and additional expenses associated with the probate process. Hence, naming a beneficiary is a crucial step in ensuring that the owner’s wishes are honored after their death.