What annuities avoid probate?


Editorial team Published on

Almost all types of annuities—including fixed, variable, indexed, and immediate annuities—avoid probate as long as you name a living, individual or entity beneficiary rather than your own estate.

How Annuities Bypass Probate

  • Direct Contracts: An annuity is a private contract between you and an insurance company. When you die, the remaining value or death benefit transfers directly to your named beneficiary.
  • No Court Involvement: Because the funds go straight to the beneficiary, they skip the public and costly probate court process.
  • Fast Transfer: Beneficiaries usually receive the money in weeks instead of the months typical of probate.

When an Annuity Fails to Avoid Probate

Your annuity will go through probate if:

  • You do not name a beneficiary on your contract.
  • You name your own estate as the beneficiary.
  • Your named primary and contingent beneficiaries have all passed away before you.