Jack Howley Shares His Introductory Guide to Private Annuities

Who Uses Private Annuities?

A private annuity is the most useful for a wealthy family member that wants to transfer assets to younger generations while avoiding most gift and estate taxes. When they are set up properly, private annuities provide tax savings to the annuitant.

The Benefits of Private Annuities

One of the most useful benefits of a private annuity is that it provides regular payments that last for the duration of the annuitant’s life. This is in exchange for transferring property like precious metals, securities, and real estate, among other types of assets. This fixed income is generally taxable at the same rates as capital gains, which is preferred over standard income tax rates.

How to Set Up a Private Annuity

In the process of setting up a private annuity, Jack Howley reminds you that you need to know the fair market value of your property. After researching the fair market value, you will need to consult the IRS annuity tables under Internal Revenue Code (“IRC”) §7520.

Situations Where an Attorney is Needed

In the case of non-complicated annuities, it is not necessary to involve an attorney. However, if you are unsure how to set it up or which type of annuity you should have, talk with an estate attorney.

Private Annuities as Retirement Savings

When properly managed, a private annuity can provide a robust source of retirement funding. Private annuities have an advantage over other types of retirement savings because they are not subject to the stock market movements but only to the changes in the assets’ fair market value.

Setting Up Annuities for Your Family’s Financial Security

Being the beneficiary of a private annuity can help families achieve financial stability. Properly taking care of this income means that the older relative making the annuity can have their retirement well-funded. They can benefit from the fact that annuities are not tied to the stock market and that their value will not fluctuate.



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Jack Howley

Jack Howley

Entrepreneur and expert in assisting corporations and individuals in meeting their wealth creation and protection objectives. Located in Rumson, New Jersey.