I have 4 annunities, is it better to name my beneficiaries or better to put them in my Trust?
I have them in my revocable Trust
Hello, I will be happy to assist you with your question. Please note that I cannot provide legal advice – I can only give you information concerning the legal issues raised by your question. After receiving your answer, you will be prompted to rate my answer. Please DO NOT RATE MY ANSWER as "Helped a little" or "I expected more" (or the 2 stars on the left if you see stars), as such a rating leaves negative feedback for me personally. Instead, if you feel one of those ratings would be appropriate, please reply to me via the REPLY or CONTINUE CONVERSATION button with the issue you have, and I will be happy to continue further and do everything I can to provide you with the service you seek.I DO NOT receive credit for my work until you rate my answer as “Got the job done” or higher.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.As noted above, if you need clarification, please do let me know. And, again, please do not rate my answer until you are satisfied. Bonuses are always appreciated.If you later open a new question and would like my assistance, please begin the question with “To TMcJD….” This will ensure that only I answer the question.
Wills, Trusts, Probate & other Estate Matters
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