No, an annuity does not usually go through probate. As a life insurance product, annuities designate a beneficiary on the policy, and if the annuitant dies, the money from the annuity goes to that person. Like life insurance, the money does not go through probate when left to a person as beneficiary. Contact a tax consultant for more information and different scenarios.
If the Annuity is owned by an individual and has an individual listed as the Beneficiary; then it avoids probate and passes directly to the listed Beneficiary free of probate.
But it is important to keep the Beneficiary for your Annuity updated on the contract. A Will does not override the Beneficiary designation on an Annuity contract. So make sure to review your Beneficiary designation upon any major life changes.
Also, if the Beneficiary is not able to be found within a reasonable amount of time (or if they are deceased), it can be reverted back to your Estate, thus being subject to Probate.
This is why it is important to list a Contingent Beneficiary on your contract. You should also inform the Beneficiary that you listed them and give them contact info for the company.
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But it is important to keep the Beneficiary for your Annuity updated on the contract. A Will does not override the Beneficiary designation on an Annuity contract. So make sure to review your Beneficiary designation upon any major life changes.
Also, if the Beneficiary is not able to be found within a reasonable amount of time (or if they are deceased), it can be reverted back to your Estate, thus being subject to Probate.
This is why it is important to list a Contingent Beneficiary on your contract. You should also inform the Beneficiary that you listed them and give them contact info for the company.