What happens to the remaining value of the annuity if the annuitant dies without a designated beneficiary?

When an annuitant dies without a designated beneficiary, the remaining value of the annuity is passed on to the annuitant's estate. This is important because it ensures that any remaining funds in the annuity can be managed and distributed according to the annuitant’s wishes as outlined in their estate plan or per the laws of intestate succession if there is no will.

The distribution from the estate can be influenced by various factors, such as debts owed by the estate or any specific provisions stated in a will. This mechanism ensures that the value does not simply disappear or remain with the insurance company without consideration. It provides a structured way to handle the financial assets of the deceased, which can then be allocated to heirs or beneficiaries according to legal protocols.