Annuity Benficiary

[chenovitz]

New York

What is the difference between having a trust listed as the beneficiary of a annuity vs. individual person(s) names. From a tax perspective which method would reduce the amount of taxes paid by the beneficiary?

For example in the trust will, it lists person A,B,C as the beneficiaries.
Does it make any sense to list person A,B,C as the benficiaries of the annuities? The idea here is to reduce the taxes owed by the beneficiaries.

Please advise, thanks in advance.

 

[ErinGoBragh]

New York

What is the difference between having a trust listed as the beneficiary of a annuity vs. individual person(s) names. From a tax perspective which method would reduce the amount of taxes paid by the beneficiary?

For example in the trust will, it lists person A,B,C as the beneficiaries.
Does it make any sense to list person A,B,C as the benficiaries of the annuities? The idea here is to reduce the taxes owed by the beneficiaries.

Please advise, thanks in advance.

You really should speak with an attorney who does estate planning. The issue of trusts can be complicated, and there are a variety of types of trusts which one can undertake- an attorney who could review your finances and wishes and reasons for those wishes would be far better than any non-specific advice you'll get from people who do not have your full financial picture.

 

[Betty]

Agree. I would talk to an estate planning attorney to help you determine which would be the best route for you to go to accomplish your wishes. Everyone's situation is not the same. An attorney can help you with your individual situation/what you want to accomplish.