One can be cashed out, the others don't have that option.

What are the advantages/disadvantages of cashing the one out? Pays until 2029. As inheritance, would cashing out be tax free? Would it be at a substantial loss as compared to riding it out?

Regarding the one that you can cash out, you'll need to know:

Whether there are surrender charges or not,

What kind of tax status it has (annuities can be set up just as annuities, as IRA's, as Roth's, etc). Knowing your own tax bracket here would help as well

Type of annuity (fixed/variable/indexed)

How long the annuity has been held and what are the inside expenses (M&E charges)?


May be more questions, but the above info would need to be on the table before you'll get a 100% accurate answer.

Some people might weigh in below saying to cash it out immediately no questions asked but the tax deferred aspects of the account, can sometimes outweigh the inside costs depending on how long it's been in force and how long it will stay there.

Great answer! Dad was three years in to a 10 year payout on a non-IRA annuity.

Annuities DO NOT receive stepped up cost basis. So, depending on the basis in the annuity, there may or may not be taxes. Any earnings on an annuity are taxed as ordinary income.

Annuity sales pictures don't talk about that, and it is often a significant issue for heirs.

B-1 83 said:

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Great answer! Dad was three years in to a 10 year payout on a non-IRA annuity.

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Is it a fixed payout (locked in payment) or variable (payout depends on the investment choices inside the annuity)? And is it just paying out gains/interest from the account or is it also paying out the basis over the next seven years?