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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13339
Experience:  15years with H & R Block. Divisional leader, Instructor
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I appreciate your response and I have another question

Customer Question

I appreciate your response and I have another question concerning this matter. I want my children to receive money from my trust and I have a successor trustee to make sure the money is distributed to my children according to the trust. I also have the trust to avoid probate on the inheritance for my heirs.
In the past the trust has been the beneficiary of some after tax annuities I have taken out but recently I have been given counsel that the trust should be the owner and beneficiary. my situation has not changed over the last 7 years and I am wondering why should this be.
Submitted: 9 months ago.
Category: Tax
Expert:  JudgeLaw replied 9 months ago.

I am going to recatagorize this under "Tax" and open it up to experts in that category for you. Do not respond to this post as it will delay an answer.

Expert:  Robin D. replied 9 months ago.

Hello

You have been advised of the trust being the owner and not the beneficiary because if the designated beneficiary is a non-spouse (i.e., any other living breathing human being besides the annuity owner’s surviving spouse), the beneficiary can stretch distributions over his/her life expectancy beginning in the year after death; but,

if the beneficiary is a non-designated beneficiary, the annuity must be liquidated within 5 years of the annuity owner’s death.

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