When the original investment(s) is/are made, the owner(s), annuitant, & beneficiary(s) must be so stated. As stated above, only the annuitant has to be a natural person. The person can hold more than one “title.” For instance, they could be the contract owner & beneficiary of the same contract. It is also possible that the annuity owner, annuitant & beneficiary are the same person. It should always be remembered that a non-person entity (such as a corporation, partnership, living trust, etc.) can only be specified as contract owner & /or beneficiary. The annuitant must be a living individual under a certain age.
HOW THE CONTRACT IS “DRIVEN”Most annuities are considered as “annuitant-driven,” i.e., if the annuitant reaches a certain age, died, or became disabled, certain provisions of the annuity would govern. Some of these provisions could waiver any penalties enacted by the insurer, or the death benefit, IRS penalty, & /or the required annuitization or distribution of the contract would go into effect, depending upon the situation of the annuitant (such as the contract owner dying, reaching a certain age, or becoming disabled). Some annuities state that certain provision can come into being if the owner, co-owner, or annuitant dies, reaches the age of annuitization, or becomes disabled. This flexibility makes the annuity more appealing in some circumstances.Article Source: http://EzineArticles.com/2075985
