Estate Law
Estate law questions? Ask an estate lawyer.
Connect one-on-one with {0} who will answer your question
Answered in 24 minutes by:
8/31/2010
Brent Blanchard, Estate and Probate Attorney
Category: Estate Law
Satisfied Customers: 1,975
Experience: Thirteen years of experience in probate, trusts, wills, and medicaid planning
VerifiedThank you for your question.
Your question is another "it depends" situation.
1. The question about the annuities implies that there are no designated beneficiaries for the annuity on the owner's death. That would be the preferred way because there is no question of who gets it, and it goes outside of probate AND outside of the trust.
2. If the trust is the stated owner of an annuity, ownership is not really an issue, and cashing out the annuity is typically done by the successor trustee. See bonus information below.
3. Regardless of who gets the money when an annuity is liquidated, any and all cash value which was not taxed in the beginning *will* be taxed in the end. If the owner funded the annuity entirely with "pre-tax" money from any sort of "qualified" retirement plan (IRA, 401(k) and several other plans), and the growth (usually interest) was tax-deferred, every penny will count as income when it is received. The IRS almost never gets you coming AND going, but they DO get their tax bite somewhere, before the money goes in (then capital gains still remain taxable, but not "return of principal" or "return of premiums" paid), or when it comes out.
4. Consultation with a tax professional who has access to the annuity contracts, or written authorization from the successor trustee to discuss otherwise confidential financial information with the Plan's customer service people, is needed to sort out the precise details of who gets taxed. It often depends on whether the dearly departed was personally the owner of the annuity, or of the trust was the owner.
Bonus info: Generally, a copy (sometimes certified) of the death certificate, and a notarized "Certificate of Trust", must be faxed, e-mailed or mailed to the insurance company to get the successor trustee in a position to get any information out of them. Once that is done, the successor trustee can direct payment of the cash value according to the terms of the trust, or the successor can just have the trust take possession of the money and then divide it up.
Thank you.
BAB.
*****
If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.
If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.
BONUS is always appreciated
That is the only way I get paid
Your question is another "it depends" situation.
1. The question about the annuities implies that there are no designated beneficiaries for the annuity on the owner's death. That would be the preferred way because there is no question of who gets it, and it goes outside of probate AND outside of the trust.
2. If the trust is the stated owner of an annuity, ownership is not really an issue, and cashing out the annuity is typically done by the successor trustee. See bonus information below.
3. Regardless of who gets the money when an annuity is liquidated, any and all cash value which was not taxed in the beginning *will* be taxed in the end. If the owner funded the annuity entirely with "pre-tax" money from any sort of "qualified" retirement plan (IRA, 401(k) and several other plans), and the growth (usually interest) was tax-deferred, every penny will count as income when it is received. The IRS almost never gets you coming AND going, but they DO get their tax bite somewhere, before the money goes in (then capital gains still remain taxable, but not "return of principal" or "return of premiums" paid), or when it comes out.
4. Consultation with a tax professional who has access to the annuity contracts, or written authorization from the successor trustee to discuss otherwise confidential financial information with the Plan's customer service people, is needed to sort out the precise details of who gets taxed. It often depends on whether the dearly departed was personally the owner of the annuity, or of the trust was the owner.
Bonus info: Generally, a copy (sometimes certified) of the death certificate, and a notarized "Certificate of Trust", must be faxed, e-mailed or mailed to the insurance company to get the successor trustee in a position to get any information out of them. Once that is done, the successor trustee can direct payment of the cash value according to the terms of the trust, or the successor can just have the trust take possession of the money and then divide it up.
Thank you.
BAB.
*****
If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.
If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.
BONUS is always appreciated
That is the only way I get paid
Brent Blanchard, Estate and Probate Attorney
Category: Estate Law
Satisfied Customers: 1,975
Experience: Thirteen years of experience in probate, trusts, wills, and medicaid planning
VerifiedBrent Blanchard and 87 other Estate Law Specialists are ready to help you
Please do not forget to click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.
Thank you.
BAB.
Thank you.
BAB.
Brent Blanchard, Estate and Probate Attorney
Category: Estate Law
Satisfied Customers: 1,975
Experience: Thirteen years of experience in probate, trusts, wills, and medicaid planning
VerifiedBrent Blanchard and 87 other Estate Law Specialists are ready to help you
How JustAnswer works
Describe your issueThe assistant will guide you
Chat 1:1 with an estate lawyerLicensed Experts are available 24/7
100% satisfaction guaranteeGet all the answers you need
Related Estate Law Questions
My mother who has recently passed has an annuity which is
My mother who has recently passed has an annuity which is not included in her trust. I called to ask who the beneficiary was and they said it was my mother. I've recently read online that the person w… read more
Barrister
Attorney
Doctoral Degree
6,741 satisfied customers
I am the executor of my mother's estate. My mother passed
My mother passed away 11 years ago. She had her money in a trust which I am also named as executor. The money from the trust was distributed according to her will and trust. I recently became aware that the state of Illinois's I Cash program is holding a some of money more than $1000. Which I applied for. … read more
Jessica B
Juris Doctor
6,059 satisfied customers
My mother has recently passed, we established a trust 14
My mother has recently passed, we established a trust 14 years ago when my father died. There are tax deferred IRA and annuity assets. The IRA is her rollover retirement assets. The annuities are life… read more
Barrister
Attorney
Doctoral Degree
6,741 satisfied customers
Revocable Living Trust question. Is it better to have life
Revocable Living Trust question. Is it better to have life insurance beneficiary arrangements to the Trust or to my trustees, individually as Trustees.… read more
Barrister
Attorney
Doctoral Degree
6,741 satisfied customers
My mother passed away last june, she left her possesions and
my mother passed away last june, she left her possesions and stocks to my brother and I. Her CPA and executor of the trust passed away last month. He had transferred remaining stocks into his name as … read more
Barrister
Attorney
Doctoral Degree
6,741 satisfied customers
My name is ***** ***** dad passed away, left us a annuity
Hi, My name is ***** ***** dad passed away, left us a annuity acct.My father did set up a trust acct. In that trust acct. My father wishes that if one of his children pass away that their child or chi… read more
RayAnswers
Attorney
Doctoral Degree
6,613 satisfied customers
I have an acct with a brokerage firm that was my deceased husbands
I have an acct with a brokerage firm that was my deceased husbands acct. The acct has now been set up in the estate name with me as the executor. This acct is suppose to go into the trust but I was to… read more
Ely
Counselor at Law
Juris Doctor
1,867 satisfied customers
My Dad established an Irrevocable Trust in 1999. At his death,
My Dad established an Irrevocable Trust in 1999. At his death, 5% of the trust value each year went to my Mom for her care. At her death, the remainder was to be split evenly between 2 universities, a… read more
RayAnswers
Attorney
Doctoral Degree
6,613 satisfied customers
My mother passed away in Feb. of this year. The way her will
My mother passed away in Feb. of this year. The way her will was written, it did not go through probate. All of the money that was left in my Mother's checkbook, savings, and stocks are to be divided … read more
Barrister
Attorney
Doctoral Degree
6,741 satisfied customers
My mother recently passed away and my sister is both trustee
My mother recently passed away and my sister is both trustee and executor of her will. There were two annuities that named my sister as primary beneficiary and as such she is not disclosing to the oth… read more
INFOLAWYER
Partner
Doctoral Degree
72,500 satisfied customers
I have a few questions...My mother has a living trust in which
I have a few questions...My mother has a living trust in which I am named to get her house. This was set up about 10 years ago, she is now worried that her sisters or possible other family members (in… read more
INFOLAWYER
Partner
Doctoral Degree
72,500 satisfied customers
My mother passed away this year. She had all her property in
My mother passed away this year. She had all her property in a revocable trust. As the executor of the trust I distributed the money amount to her beneficiaries from an annuity that she had and I inhe… read more
Isaac, Esq.
Attorney at Law
Doctoral Degree
42,160 satisfied customers
My mother just passed away. She had just two assets, a house
My mother just passed away. She had just two assets, a house and an annuity, both titled under her living trust which designates me and my sister as trustees. No debts. How do we transfer title to us?… read more
lwpat
Doctoral Degree
6,615 satisfied customers
Less than a year before my mother passed on, I contacted her
Less than a year before my mother passed on, I contacted her estate attorney with questions of needing to take out some annuity funds to pay for her care, and how much to take out. The estate attorney… read more
N Cal Atty
JD
7,573 satisfied customers
My mother just passed away. She had two trusts. One drawn
My mother just passed away. She had two trusts. One drawn in 1994 in which she recorded a deed of trust in the name of that trust. She named successor trustees and her will stated the portionate share… read more
Thomas McJD
Attorney
Doctoral Degree
3,170 satisfied customers
I have three questions 1. My mother has past on. In
I have three questions: 1. My mother has past on. In the State of Florida, where my mother's estate is now in probate, I was told by a friend, after the fact, that any estate under $600,000 does not h… read more
Daniel P.
Managing Attorney
Juris Doctor
2,741 satisfied customers
MY MOTHER IS 86 LIVES ALONE IN CALIFORNIA, she owns a home
MY MOTHER IS 86 LIVES ALONE IN CALIFORNIA, she "owns" a home on a lake also her primary and only residence. her sole income is social security there are 4 siblings over the age of 53 who will inherit … read more
Thomas McJD
Attorney
Doctoral Degree
3,170 satisfied customers
our father just passed away. our mother is still alive. they
our father just passed away. our mother is still alive. they have a will and she just updated it today. the attorney they used said that when she passes away, it will have to go through probate. i dis… read more
Legal Eagle
Attorney
Doctoral Degree
538 satisfied customers
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).
JustAnswer in the News:
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
What Customers are Saying:
My husband has been driving me insane with questions regarding estate issues since his mother died. I'm not a lawyer! Thanks to JustAnswer, I was able to calm his concerns.
Illinois
Thanks Adam!! - A very direct and understandable response - you have been a great help!
Ellicott City, MD
Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!
Edmond, OK
My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.
Redwood City, CA
I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.
Wichita, KS
PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.
Houston, TX
Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!
Atlanta, GA
< Previous | Next >
Meet the Experts:
Thomas McJD
Attorney
3,170 satisfied customers
Wills, Trusts, Probate & other Estate Matters
Barrister
Attorney
6,741 satisfied customers
19 yrs estate law, real estate. Wills/Trusts/Probate
RayAnswers
Attorney
6,613 satisfied customers
Texas lawyer for 30 years in Estate law
Ely
Counselor at Law
1,867 satisfied customers
Fully licensed attorney in Texas in private practice.
RobertJDFL
Attorney
1,618 satisfied customers
Experienced in multiple areas of the law.
P. Simmons
Attorney
1,335 satisfied customers
12+ yrs. of experience including estate law.
ScottyMacEsq
Attorney
1,334 satisfied customers
Licensed Texas General Practice Attorney
< Previous | Next >
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).
