By Arden Dale | March 16, 2007
Most investors don't realize the potential tax implications of inheriting an annuity until faced with an unexpected bill.
A boom in annuities -- more than $1.7 trillion is now backing these investments in the United States -- has occurred as more people plan for retirement.
A substantial tax hit can be an unexpected effect as more children and even grandchildren receive an annuity windfall. Other problems may include getting stuck with an annuity geared to the needs of a retiree, or one that is highly illiquid."