What Happens To A Variable Annuity When You Die? 
Annuities are contracts . The contract normally names a beneficiary and often a contingent beneficiary should the beneficiary die first . The value of the annuity would be transferred to the beneficiary and the company would issue a 1099 for any taxable distribution . Depending upon the annuity it might have the option for the beneficiary to continue the annuity for their own benefit . 