What is a measuring life?
The purchase price of a structure is directly related to the life expectancy of a plaintiff. The measuring life is almost always that of the plaintiff. However, it is possible to base the structure on the joint life expectancies of two people (e.g., husband and wife). What happens upon death of the plaintiff/claimant/annuitant? Four scenarios are possible depending on how the structure is designed: : • If the plaintiff dies before the end of a guarantee period all remaining payments required to be made under the annuity contract can be made to such beneficiary or beneficiaries as the plaintiff names in a Will, or in accordance with a court order under the Estate Administration Act RSBC c.122. • If the plaintiff dies after the end of the guarantee period the payments cease. • If there is no guarantee period then the payments will cease upon the plaintiff’s death.
