What happens to my variable annuity upon my death?

Upon the death of the annuity holder, the fate of the variable annuity depends on the beneficiary designation. If a beneficiary is named, the annuity will pass directly to them, typically avoiding probate. The beneficiary can elect to receive the proceeds as a lump sum or choose from various options such as periodic payments or withdrawals. Any amount remaining in the annuity continues to grow tax-deferred until distributed. In case no beneficiary is designated, the annuity may become subject to the terms of the annuity contract or state law. In such cases, it is advisable to consult both legal and financial professionals for guidance.