Can You Buy an Annuity for Someone Else

Can You Buy an Annuity for Someone Else? Here’s the Real Answer

We’ve all had that moment where we’re thinking about the people we love and wondering how to help secure their future. Maybe it’s a parent who’s living on a fixed income. Maybe it’s an adult child who could use a financial safety net. Or maybe it’s a spouse who you want to know will be financially comfortable no matter what happens.

Annuities often pop up in those conversations — they can provide guaranteed income, protect against outliving your money, and offer peace of mind. But here’s the big question:

**Can you actually buy an annuity for someone else? **

The short answer is: **Yes, in many cases, you can.** But there’s more to it than just writing a check and saying, “Here you go.” Let’s walk through what’s possible, what’s not, and what you should think about before making that move.

How Buying an Annuity for Someone Else Works

When you buy an annuity for another person, there are three important roles to understand:

1. **Owner** – The person who controls the contract, makes decisions, and can change beneficiaries.
2. **Annuitant** – The person whose life expectancy determines the income payout schedule.
3. **Beneficiary** – The person who receives remaining payments or death benefits.

Here’s where it gets flexible:

* You can buy an annuity where **you are the owner** but the income is based on someone else’s life (the annuitant).
* You can buy an annuity directly **in their name**, giving them full ownership and control (with their consent).
* You can even structure it so that **you fund it**, but payouts go directly to them.

It’s not one-size-fits-all — the right setup depends on your goals.

Why You Might Buy an Annuity for Someone Else

There are a lot of scenarios where this makes sense:

* **Helping a Parent** – Maybe Mom or Dad is retired and worried about running out of money. A fixed annuity could provide a guaranteed monthly income for life.
* **Supporting an Adult Child** – If they’re just starting out or rebuilding after a financial setback, an annuity can create stability.
* **Protecting a Spouse** – You can set up an annuity that continues paying your spouse even after you’re gone.
* **Legacy & Estate Planning** – Annuities can be part of a plan to pass on wealth in a controlled, tax-efficient way.

Think of it as building a “personal pension” for someone you care about.

Important Things to Keep in Mind

Before you start signing paperwork, here are a few big points to consider:

* **Consent is required** – You can’t just buy an annuity in someone else’s name without their knowledge.
* **Taxes still apply** – The person receiving the payments will likely owe income tax on them.
* **Age and health matter** – These factors can impact payout amounts and eligibility.
* **Annuities are long-term** – Once set up, many contracts can’t be changed or canceled without penalties.
* **Different types work differently** – Fixed, variable, and immediate annuities all have unique benefits and risks.

Real-Life Example

Let’s say you have an 80-year-old parent who’s living off Social Security and some savings. You’re concerned that their money won’t last if they live another 15–20 years. You could buy a **single-premium immediate annuity** in their name, which would start paying them a set monthly amount right away for life.

That income could mean less stress for them — and for you — knowing they won’t have to choose between groceries and medical bills.

Why Talk to a Financial Advisor First

This isn’t just about buying a product. It’s about setting up the right plan for the right person in the right way.

A fiduciary financial advisor can help you:

* Compare different annuity types and carriers
* Structure the ownership in the most beneficial way
* Consider tax implications for both you and the recipient
* Make sure it fits with your overall financial plan

Without the right setup, you could end up with higher taxes, less flexibility, or even the wrong product altogether.

Yes, you can buy an annuity for someone else — but it’s not a simple “click and done” purchase. It’s more like customizing a suit: you want the fit to be perfect for their needs, lifestyle, and long-term security.

If you’re thinking about helping a loved one in this way, it’s worth having a strategy session to figure out:

* Which annuity type makes the most sense
* How to structure ownership and beneficiaries
* How to minimize taxes and maximize benefits