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Your Answer:

Whether it’s better to have the annuities in trust or just name beneficiaries depends on what type of annuities you have.

If they are non-qualified (no deferred income tax benefit), then having them in trust is preferable because the trust controls your estate distribution upon your death and you have the assurance that your annuities will be distributed the same as your other trust property.

However, if the annuities are qualified annuities (or if you’re not sure), then the safer approach is to simply name beneficiaries and maintain ownership in your individual name. Otherwise, there might be negative income tax consequences.

However, if you already have the annuities held in trust, and have had for some time, then it is likely your annuities are non-qualified and that there will be no negative repercussions from such ownership, in which case leaving ownership in your trust would be fine.

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