What happens to my living annuity when I die?

When you pass away any residual investment value is distributed among your beneficiary(ies).

Other than any retirement fund contributions not claimed for tax – and not yet returned to you by way of a tax-free lump sum or tax-free annuity income  – your residual capital will not attract Estate Duty as it will not form part of your estate.

Your beneficiary(ies) can elect to receive the residual value as a lump sum or as an annuity or a combination of a cash lump sum and annuity. Your living annuity will only fall within your deceased estate and be subject to your Will if you do not nominate any beneficiary(ies) or if your beneficiary(ies) cannot be traced.