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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6100
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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My husband and I setup a trust for our family estate. My

Customer Question

My husband and I setup a trust for our family estate. My husband purchased an annunity using IRA funds from AARP. We were told to put this annuity under the trust. My husband died on July 29 and now I have received the remaining money from that annuity of $30,00.00. The check I received is paid to the trust. Is there some way I can return this money back to the IRA so that I don't have this additional income to pay taxes on this year. The trust was under my husband's social security number and we have been paying our taxes under that number as well as mine.
Submitted: 1 month ago.
Category: Tax
Expert:  Stephen G. replied 1 month ago.

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Expert:  Stephen G. replied 1 month ago.

First of all, condolences for the recent loss of your husband, I know this may be a difficult time for you.

When you say the annuity was purchased using IRA funds (from AARP) and you "put the annuity under the Trust", exactly what do you mean (if you know)?

Do you mean that the Trust was the owner of the Annuity, or the Trust was the beneficiary and/or your husband was the Annuitant?

If the check was made out to the Trust, it seems that the Trust was at least the beneficiary.

Do you know what the original purchase amount of the annuity was and was the Trust receiving payments from the annuity while your husband was alive?

Unfortunately what you can do and can't do depends upon exactly what happened from the time the money came out of the AARP IRA until you received it as the result of your husband's death.

Unless you already have the information, you will need determine when and what the status was of the origin of the annuity. Do you know what tax year that the annuity was purchased? It seems that it may have been this year as you were asking if the funds could be returned to the IRA? Once the funds were deposited into the annuity, unless that annuity was part of the AARP IRA (I presume that was your husband's IRA?), you would not be able to redeposit the funds in the IRA. You may be able to roll the funds over to another annuity, but that depends upon the timing and the ownership questions I and Trust status I asked about previously.

What was the date that you received the check for $30,000. payable to the Trust and have you deposited it into a Trust account?

Was the Trust a Joint Revocable Living Trust or was it just your husband's Revocable Living Trust; I realize the Trust was using his Social Security Number.

I apologize, but what seems straightforward, quickly gets complicated when dealing with IRAs and Annuities.

Steve G.

Expert:  Stephen G. replied 1 month ago.

Just checking in....................

I see that you had a chance to view my response this morning.

Do you have any follow-up questions, or can I be of any further assistance on this question?

If not, please remember to rate my response as that is the only way I will receive credit (payment) for responding to your question. Without a rating, I am not compensated.

There is no charge for providing me with a rating.

Thanks very much,

Steve G.

Expert:  Stephen G. replied 22 days ago.


Just checking in.....................

I'd like to close out this question before the end of the month, if possible.

I would appreciate it if you would take a moment to let me know if I can assist you further and/or if you would provide a rating for my responses as indicated above.

Thanks again,

Steve G.

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