Several years ago, my estate lawyer set up a special needs trust for my daughter. At the time, my lawyer advised me to change all of my beneficiaries
to "the Estate of Paula Schram," as my daughter cannot inherit anything directly. The special needs trust does not go into effect until my death. When I asked my lawyer if I could make the special needs trust the beneficiary for my annuities, now &/or, when I annuitize, she said that annuity beneficiary laws
were very complicated, and are changing. She suggested that I speak to an accountant. When I asked you about it a year ago, you said that new regulations
would be released by the end of the year 2015. Another lawyer told me that it might be possible for the beneficiary to be the special needs trust, "which is to be created on my death." My lawyer also told me that there are different types of annuities, and allowable beneficiaries may depend on what type they are. I have had an IRA variable annuity since 2003. Because I turned 70 last June, I will most likely start annuitizing in April 2017, rather than take the Required Minimum Distribution
. When I annuitize that account, it will be fully taxable. The other annuity that I have is a non-IRA that I obtained in Sept. 2015. I do not plan to annuitize that account for several years. Last year, I also obtained a Single Premium life insurance policy.Tax
-wise, would it be more beneficial for my estate to be my beneficiary, or the special needs trust, if allowable, for these accounts?
Thank you so much for your attention to these matters.