No annuities do not get a step up in basis. The step up in basis only applies the IRS defined investments, a class to which annuities do not belong.
Annuity death benefit are passed to the named beneficiary and any gain on the cash is recognized as income with income tax due on this amount on the behalf of the recipient.
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Annuity death benefit are passed to the named beneficiary and any gain on the cash is recognized as income with income tax due on this amount on the behalf of the recipient.