After-Acquired Property Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of After-Acquired Property, written in plain English, along with examples of how it is used.

What is After-Acquired Property?

n. an anuity is a, fixed sum of money granted by one party to another in fee or payment for something, to be paid regularly over a period of time, sometimes a lifetime. An annuity may be created by contract, or by will

History and Meaning of Annuity

An annuity is a financial product that pays out a predetermined amount of money at fixed intervals, typically for the rest of the annuitant's life. Annuities can be purchased through an insurance company or other financial institutions. Annuities can be classified into two types: immediate annuities and deferred annuities. Immediate annuities begin paying out right after they're purchased, while deferred annuities start making payments at a specified future date or after a certain period.

The concept of annuities can be traced back to ancient Rome, where citizens would make a one-time payment to the government in exchange for regular annual payments. In modern times, annuities have become a popular investment option for those looking for a steady source of retirement income.

Examples of Annuity

  1. John buys a $100,000 immediate annuity from an insurance company that pays him $6,000 per year for the rest of his life.
  2. Mary purchases a deferred annuity that pays her $2,000 per month starting ten years from now.
  3. Tom receives a structured settlement annuity after winning a lawsuit, which pays him a fixed amount every month for a specified period.

Legal Terms Similar to Annuity

  1. Pension: a retirement plan that provides a fixed income to an employee during their retirement.
  2. Trust: a legal arrangement where assets are held by one party for the benefit of another.
  3. Endowment: a donation of money or property to a nonprofit organization that uses the investment earnings to fund its activities.
  4. Life Insurance: a contract between an individual and an insurance company, where the insurer agrees to pay a certain amount to the designated beneficiaries upon the death of the insured person.