Annuity Beneficiary: An individual or an organization who will receive the remainder funds from an annuity on the death of the annuitant.

The remainder fund from an annuity is the monetary value of the funds or assets held in the annuity on the death of the annuitant. A beneficiary can be a first, second or third remainder. The State can also be a beneficiary. The first remainder beneficiary is entitled to receive the remainder funds in the annuity on the death of the annuitant. The second remainder beneficiary is entitled to receive the funds or assets in the annuity after the interest of the first remainder has been terminated, for example, through death.

Example

Susan Smith is Linda Smith's dependent child. Linda Smith has purchased a long term annuity. A case worker creates an Annuity Beneficiary for Susan Smith relating to Linda Smith's annuity. Susan Smith is considered the first remainder beneficiary, therefore, on Linda Smith's death Susan Smith will be entitled to receive benefits from the annuity.