How Does Purchasing an In-Force™ Fixed Term Annuity Work?
Posted on June 5, 2013
Are you interested in purchasing an In-Force™ Fixed Term Annuity but are not really sure what that entails?
What we do at Bulbrook/Drislane is buy a Fixed Term Annuity from an Existing Annuitant and transfer the payment rights to you, the Buyer, through a court transfer process. Your name, IRA name, intermediate transferor or nominee, or payment assignment trust name will be stated in the transfer court order, which is generally obtained in the state where the Existing Annuitant resides.
Next, the court directs the insurance company that issued the Fixed Term Annuity to pay to the designated payee all of the annuity payments when they are due and as further assigned. The court order assures that the Existing Annuitant has relinquished title to his or her payment rights as well as securely effecting the payment reassignment.
Payments are made whether the Existing Annuitant lives or dies during the period that the payments are due. Upon the death of the Buyer, the payments continue to the joint owners or the estate of the Buyer, as designated.
Payments are typically made by a check mailed to your designated address or by direct deposit into your bank account. The insurance company usually determines the method of payment. As the Buyer, you may change the address for payment or bank account designation at any time by informing the insurance company directly.
Bulbrook/Dirlane is responsible for the overall business and operation of the In-Force™ Fixed Term Annuity transfer and sale process. This includes:
- Entering into a sale agreement with the Existing Annuitant to acquire the payment rights to each annuity in return for an agreed upon present value cash amount.
- Finding a Buyer to acquire the payment rights to the annuity at an agreed upon rate of return and corresponding price.
- Completing the annuity transfer process, including obtaining a transfer court order, in accordance with US state and federal laws.
- Overseeing the transfer due diligence process as set out in the Sale and Assignment Agreement with the Existing Annuitant and the Receivable Purchase Agreement with the Buyer.
- Safeguarding the Buyers funds until the transaction closing.
- Closing the purchase of annuity payment rights with the Buyer and providing a Closing Book containing all documents set forth in the Receivable Purchase Agreement.
If you are interested in talking about how we can help you decide if this is right for you please don’t hesitate to contact us today!