My aunt died last month (Jan 06) and left my sister an annunity worth appox 100,000. I am not sure if she was on the annunity as the beneficiary or co-owner. Would like to know the tax libility if she were to cash in the annunity. Sher is going to split the money with my brother and other sisters but is saying that the bank told her the tax was atleast 40%. It doesn't sound right?