Private annuities don't fall under the same rules that federal government benefit payments due. With the federal benefits, you are restricted by regulation, and subject to reclamation. With the private annuity, if it's coming in via ACH, you should return them if they are received after you have knowledge of death, but there's nothing compelling you to return funds received before acquiring that knowledge. As Randy pointed out, that's between the insurance company paying the annuity and the estate (if the annuitant is dead).
And "knowledge" of death doesn't come from the phone call/email exchange you described unless there's more information that we haven't seen yet. On that aspect, I also agree with Randy.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8