Children entitled to annuity proceeds, not widow, Louisiana court determines
January 12, 2016 by STEVEN A. MEYEROWITZ
Shelby and Peggy Bagala applied to Merrill Lynch Life Insurance Company, a predecessor in interest of Transamerica Life Insurance Company, for an annuity contract on July 18, 2003. The application named Mr. Bagala the annuity’s owner and did not designate a co-owner. Nonetheless, Ms. Bagala signed her name in a box labeled “Co-Owner’s signature,” while Mr. Bagala signed as the owner.
The annuity’s initial premiumwas $1,354,232.56. The Bagalas funded this premium by exchanging five pre-existing annuity contracts pursuant to 28 U.S.C. § 1035, which permits an insurance company’s client to exchange an annuity for another annuity issued by the company without subjecting any income attributable to the replaced annuity to tax obligations.
Originally Posted at LifeHealthPro on January 12, 2016 by STEVEN A. MEYEROWITZ.
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