A type of annuity contract between the annuitant and someone other than an entity that is regularly engaged in the business of issuing annuities (e.g., insurance companies). The primary purpose of a private annuity is to reduce estate taxes by eliminating assets from the estate of an individual during his or her lifetime. This is usually accomplished when an elderly family member transfers assets to a younger family member who makes an unsecured promise to pay a lifetime annuity to the transferor.
a contract that provides for specified payments to the named annuitant during the annuitant's lifetime
an annuity contract issued by an individual rather than a commercial insurance company
an annuity issued from a party not engaged in the business of writing annuity contracts
an arrangement under which an individual or entity promises to make periodic payments to the transferor for the transferor's remaining life
a personal or restricted annuity
a promise by someone (such as a child) to pay a fixed amount of money to you every year for the rest of your life
a sale of an asset to a younger generation in exchange for an unsecured promise to pay annual amounts to the seller for the seller's lifetime
A means of transferring property from one owner to another by "selling" it for an unsecured promise to pay the original owner an income for life. The sale price is based on fair market value at the time of sale.
A client sells an asset in return for a promise of periodic payments of principal and interest (an annuity). Typically created for the life of the seller.
Generally an annuity contract that is not issued by an insurance company or is not a commercial annuity.