by John Darer® CLU ChFC MSSC RSP CLTC
Generally, if you are receiving structured settlement payments, you may have the ability to designate and change the beneficiary.
- Generally you can name who you like, even your favorite charity and even parse out percentages to multiple beneficiaries. and contingent or joint benefificiaries.
- The process requires completing the required forms that each annuity issuer requires and ave it recorded before your death. before the date of your death.
- The beneficiary receives any remaining certain payments and guaranteed lump sum payments when such payments come due.
- Life contingent payments are only made if living. For example, if you settle your case in 2015 with a structured settlement that is due to pay you $5,000 per month, starting June 1, 2015 for the rest of your life with 35 years certain and you die May 2, 2025, your beneficiary will receive the $5,000 per month from June 1, 2025 for the next 25 years after which payments will stop.
What if you dont have a beneficiary or can’t think of a beneficiary for your structured settlement if you pass?
If you don’t have specific person you want to leave money to, you could fund a scholarship with any remaining payments.
Naming a beneficiary will generally result in a faster process for your loved ones
It’s a claims process not a probate process. In most cases, the beneficiary simply reports the claim, fills out a claim form, attaches a copy of the death certificate and provides whatever else the life insurance company that issued the structured settlement annuty or teh qualified assignment company may require.
If you don’t name a beneficiary, or the beneficiary is not living at the time of your death, payments go to your estate, where they will be distributed when due in accordance with your will. If you have no will then the laws of intestacy apply. Naming a beneficiary is better for you because your wishes will be complied with. For those you leave behind, there is no need to go through probate in order to have payments released, a process tha could take years.
When would you not be able change a beneficiary?
If your payments go to a Special Needs Trust (known as a Supplemental Needs Trust in New York) there may be a commutation rider to be considred as part of the settlement planning process.
Reviewing your Beneficiary Designation
A periodic review of your beneficiary designation is recommended, particularly after life changes. Beneficiary changes have to be in writing and recorded at the annuity issuer.
What if there is an Irrevocable Beneficiary Designation?
If there is an irrevocable beneficiary designation, you cannot change the beneficiary..
When is there no beneficiary on a structured settlement annuity?
If the annuity is a life only annuity, temporary life annuity, or you’ve had a certain and life annuity for some time and annuity is currently beyond the certain period, then the payments stop upon the death of the annuitant.
This also applies if the annuitant has previously sold all period certain and/or certain lump sum structured settlement payment rights.
RELATED READING
Structured Settlement Death Claims | What You Need to Know 2026 (4structures.com) January 29, 2025
Structured Settlement Beneficiary | Why It’s Important (4structures.com) July 24, 2023
Structured Settlement Beneficiary Designations : The Beneficiary Mantra (4structures.com) March 24, 2021 Updated Augsut 23, 2025. Read about the Eustler case.