Facts: An older man in his second marriage purchases a SPIA with "his money" in order to receive income. He wants to call all the "shots" so he is the sole owner. He names his new, much-younger wife as the annuitant.
He wants the payment over her life expectancy as he intends for the contract to revert to her upon his death and wants the payment paid over her life. But, just in case she dies first, he names himself the beneficiary to receive the legacy portion of the SPIA at her death.
Complicatons: His kids from his first marriage, who love their mother and don't care much for his new wife, will inherit the rest of his estate through his will. Also, he doesn't really want his kids to know about the SPIA contract purchase intended for his new wife. Sounds like a good plan, right?
Several years later, as expected, he dies, predeceasing his new wife.
Let's go inside the case to find out, what happened?
The SPIA contract per the contract language reverts to the joint owner, but there wasn't one because he was the sole owner and wanted the sole control "to call all the shots."
